Organizational Structures and Job Rewards in Sweden

Abstract

In this article, we examine how the organizational structure affects workers' job autonomy and earnings in Sweden. The analysis is based on survey data from a probability sample of Swedish employees and their work organizations. Four aspects of the organizational structure are studied: establishment size, hierarchical structure, firm internal labour market arrangements, and formalization of work routines. Our results indicate that the structural features of the organization have a considerable impact on job autonomy and earnings. Some of the findings are in line with conventional hypotheses Other results, however, are not as might be expected from the mainstream theoretical literature For example, one central result is that tall and lean hierarchies seem to enhance, rather than restrict, job autonomy Another finding is that while structural features of the organization seem to affect job autonomy in the same way for both men and women, the organizational structure has an impact on male, but not female, earnings