The effect of employee loyalty on wages |
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| Institution: | 1. Machine Learning Group, Fraunhofer Heinrich Hertz Institute, Berlin, Germany;2. Machine Learning Group, Berlin Institute of Technology, Berlin, Germany;3. Neurophysics Group, Department of Neurology, Charité University Medicine, Berlin, Germany;4. Bernstein Center for Computational Neuroscience, Berlin, Germany;5. Department of Brain and Cognitive Engineering, Korea University, Seoul, Republic of Korea;6. Neurotechnology Group, Berlin Institute of Technology, Berlin, Germany;7. Center for Cognition and Decision Making, National Research University Higher School of Economics, Russian Federation |
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| Abstract: | In spite of a sizeable body of research linking employee loyalty to organizational performance, the causal link between employee loyalty and employee wages has rarely been examined. We use the UK’s 2011 Work and Employment Relations Survey (WERS) employee-firm matched data to estimate ordinary least squares (OLS), instrumental variables (IV) models and treatment effects models. Our results show that employee loyalty is negatively associated with wages. |
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| Keywords: | Employee loyalty Wages Instrumental variables |
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