Is corporate social responsibility associated with lower wages?

Karine Nyborg and Tao Zhang

Memo 01/2011

Memo (pdf)

Firms with a reputation as socially responsible may have an important cost advantage: If workers prefer their employer to be socially responsible, equilibrium wages may be lower in such firms. We explore this hypothesis, combining Norwegian register data with data on firm reputation collected by an employer branding firm. Adjusting for a large set of background variables, we find that the firm’s social responsibility reputation is significantly associated with lower wages.

Published June 20, 2014 1:46 PM - Last modified Jan. 24, 2019 11:44 AM