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In recent years, a large academic debate has tried to explain the rapid rise in CEO pay experienced over the past three decades. In this article, I review the main proposed theories, which span views of compensation as the result of a competitive labor market for executives to theories based on...
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feasible in firms with supranormal profits (monopolistic firms). The paper also shows that a minimum wage regulation distorts … minimum wage thus leads to underinvestment in competitive firms, but could lead to excessive human capital accumulation in …
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