Corporate Demography and Wage Inequality: Revisited

To further research how organizations influence workforce wage inequality, the authors replicate and extend Sorensen and Sorenson's study on organizational demography and wage inequality in region-industries by (1) replicating original results from Danish regions from 1992 to 1998 using a close-to-identical dataset in Sweden during the same time period, (2) using multiverse analysis to gauge the effect of analytical choices on research results, and (3) expanding the scope of Sorensen and Sorenson's model by two new measures of organizational diversity. The findings suggest strong to fair test-retest validity of the original model, but model extensions with nuanced measures of organization form diversity do not enhance the model's explanatory power. The authors analyze and discuss replication anomalies and show how multiverse analysis can be gainfully used more generally in comparative organizational sociology.