We define the wage incentive to management as the wage premium the manager earns because of his/her supervising role. We adopt an approach based on what if questions and estimate the premium at different quantiles of the distribution of wages for 26 European economies. To ease comparisons we...

We define the wage premium to supervision (WPS) as the extra wage that supervisors earn relative to their subordinates, and estimate it at different quantiles of wage distribution for 26 European economies, comparatively focusing on the UK. We find that, by compensating supervisory positions...