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In recent decades, most developed countries have experienced a simultaneous increase in income inequality and management compensation. In this paper, we study the relation between management compensation and firm-level income dynamics in a general equilibrium model. Empirical estimation, of the...
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American business seems to be infatuated with its workers' "leadership" skills. Is there such a thing, and is it rewarded in labor markets? Using the Project Talent, NLS72 and High School and Beyond datasets, we show that men who occupied leadership positions in high school earn more as adults,...
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We examine the relationship between wages and skill requirements in a sample of over 50,000 managers in 39 companies …
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order of magnitude larger for owners and managers compared to other types of skilled workers. We interpret this to imply … by choosing to employ more levels of management. These managers require a higher average skill level and command a higher … average skill premium. Additionally, our model predicts that skill premium is increasing in the ratio of workers to managers …
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