workplace governance

Ownership and Pay in Britain

Drawing on principal-agent perspectives on corporate governance, this paper examines whether employees’ hourly pay is linked to ownership dispersion.  Using linked workplace-worker data from the British Workplace Employment Relations Survey (WERS) 2011, we find average hourly pay is higher in dispersed ownership workplaces.  The raw gap of 30 log points falls to 8 log points when we control for differences in worker and workplace characteristics.