Is Corporate Social Responsibility Associated with Lower Wages?

Authored by Karine Nyborg and Tao Zhang

Published in Environmental and Resource Economics May 2013, Volume 55, Issue 1, pp 107-117.


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.

Link to the article on SpringerLink

Published Apr. 23, 2013 12:08 PM - Last modified Apr. 23, 2013 12:12 PM