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Author: Felipe Benguria Publisher: ISBN: Category : Languages : en Pages : 56
Book Description
Using a linked employer-employee census for Brazil, this paper studies the relative importance of inequality between and within firms in explaining both levels and changes over time in overall earnings inequality. During the 1999-2013 period, the sharp decline in overall inequality in Brazil has been driven mostly by a drop in between-firm inequality. Within-firm inequality has only fallen slightly, increasing its share in overall inequality to about 44 percent by the end of this period. Estimating an earnings model that decomposes wages into worker and firm fixed effects, I find that between-firm inequality in the cross-section is explained mostly (57%) by variation across firms in the worker fixed effects. The change in between-firm inequality over this period is explained primarily by variation in the worker fixed effects, but the variation in firm fixed effects is almost as important.
Author: Felipe Benguria Publisher: ISBN: Category : Languages : en Pages : 56
Book Description
Using a linked employer-employee census for Brazil, this paper studies the relative importance of inequality between and within firms in explaining both levels and changes over time in overall earnings inequality. During the 1999-2013 period, the sharp decline in overall inequality in Brazil has been driven mostly by a drop in between-firm inequality. Within-firm inequality has only fallen slightly, increasing its share in overall inequality to about 44 percent by the end of this period. Estimating an earnings model that decomposes wages into worker and firm fixed effects, I find that between-firm inequality in the cross-section is explained mostly (57%) by variation across firms in the worker fixed effects. The change in between-firm inequality over this period is explained primarily by variation in the worker fixed effects, but the variation in firm fixed effects is almost as important.
Author: OECD Publisher: OECD Publishing ISBN: 9264900225 Category : Languages : en Pages : 186
Book Description
Even though firms play a key role in shaping wages, wage inequality and the gender wage gap, firms have so far only featured to a limited extent in the policy debates around these issues. The evidence in this volume shows that around one third of overall wage inequality can be explained by gaps in pay between firms rather than differences in the level and returns to workers’ skills.
Author: Martim Leitão Publisher: ISBN: Category : Income distribution Languages : en Pages : 51
Book Description
This paper examines the mechanisms through which firms impact earnings inequality dynamics. Using a rich combination of administrative matched employer-employee-job title data, and detailed technology adoption firm surveys for Portugal, we show that the decrease in wage inequality has arisen from a compression in the firm pay premium, the job title pay premium and their covariance. These effects were mainly driven by a decline in passthrough from firm characteristics to pay, rather than changes in the distribution of these characteristics. Results show that workforce composition and labor productivity are the main drivers of firm pay premiums compression, and that this effect comes from a decline in returns to these characteristics. An increasing share of workers earning the minimum wage and a reduction in labor market concentration also contributed to the fall in between-firm pay premium dispersion but had smaller roles. We also find that technological adoption increases within-firm labor income inequality. Our results shed new light on how firms impact labor income inequality dynamics and have profound policy implications for the design of policies to mitigate inequality.
Author: Donald Tomaskovic-Devey Publisher: Oxford University Press, USA ISBN: 0190624426 Category : Social Science Languages : en Pages : 305
Book Description
Organizations are the dominant social invention for generating resources and distributing them. Relational Inequalities develops a general sociological and organizational analysis of inequality, exploring the processes that generate inequalities in access to respect, resources, and rewards. Framing their analysis through a relational account of social and economic life, Donald Tomaskovic-Devey and Dustin Avent-Holt explain how resources are generated and distributed both within and between organizations. They show that inequalities are produced through generic processes that occur in all social relationships: categorization and their resulting status hierarchies, organizational resource pooling, exploitation, social closure, and claims-making. Drawing on a wide range of case studies, Tomaskovic-Devey and Avent-Holt focus on the workplace as the primary organization for generating inequality and provide a series of global goals to advance both a comparative organizational research model and to challenge troubling inequalities.
Author: Jorge Alvarez Publisher: International Monetary Fund ISBN: 1484333039 Category : Business & Economics Languages : en Pages : 59
Book Description
We document a large decrease in earnings inequality in Brazil between 1996 and 2012. Using administrative linked employer-employee data, we fit high-dimensional worker and firm fixed effects models to understand the sources of this decrease. Firm effects account for 40 percent of the total decrease and worker effects for 29 percent. Changes in observable worker and firm characteristics contributed little to these trends. Instead, the decrease is primarily due to a compression of returns to these characteristics, particularly a declining firm productivity pay premium. Our results shed light on potential drivers of earnings inequality dynamics.
Author: Boris Georgiev Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This paper analyzes changes in within-firm inequality of hourly wages arising from export shocks to exporting firms in Denmark. We provide causal evidence that export demand shocks increase within-firm inequality. Decomposing overall inequality into within and between components for occupational and educational groups, the results show that exports lead to a significant increase in within-group wage inequality but do not affect the between-group component. We develop a partial equilibrium model, featuring heterogeneous workers, which rationalizes these observations and shows how export demand shocks induce a complementarity effect, leading to increases in wage inequality within firms.
Author: Claudine Madras Gartenberg Publisher: ISBN: Category : Languages : en Pages : 64
Book Description
How does market competition affect pay inequality between and within firms? Using division managers as a pool of similar workers and the Canada-US Free Trade Agreement, we find that greater competition increases overall pay inequality between, but not within, firms. This null effect within firms is not driven by lack of statistical power. Instead, we find that it predominates within subsamples of firms with higher predicted levels of social comparison. Further, increased competition leads to greater pay-performance sensitivity among the higher-paid managers within firms, while it leads to greater overpayment among the others. These last results are consistent with firm principals increasing incentive strength of their best managers, and overpaying the rest. Altogether, this study suggests that, while competition leads to greater pay inequality overall, principals aim to maintain equality within firms, and do so through the differential provision of incentives among employees.
Author: Martin Schaller Publisher: GRIN Verlag ISBN: 3346715078 Category : Business & Economics Languages : en Pages : 58
Book Description
Bachelor Thesis from the year 2017 in the subject Economics - Finance, grade: 1,0, LMU Munich, language: English, abstract: This thesis will concern research on causes of income inequality, it asks the following question: What drives income inequality at the firm-level? More precisely this would entail the questions: What influences the development of market earnings inequality between firms, understood as establishments? What influences the development of market earnings inequality between firms, understood as distinct corporate units? I start my thesis with two recent articles that adress these questions and that employ a similar methodology to different countries. The first one is a paper by David Card, J ̈org Heining and Patrick Kline Card et al. (CHK), the second one is by Jae Song, David J. Price, Fatih Guvenen, Nicholas Bloom and Till von Wachter Song et al. (SPG). CHK is concerned with firms as establishments in Germany and SPG with firms as corporate units in the U.S. Both articles are concerned with more than just between-firm inequality. For brevities sake the parts on their other research concerns will be mentioned, but not as in-depth as the parts that concern between-firm inequality.
Author: Giulia Faggio Publisher: ISBN: Category : Industrial productivity Languages : en Pages : 80
Book Description
There has been a remarkable increase in wage inequality in the US, UK and many other countries over the past three decades. A significant part of this appears to be within observable groups (such as age-gender-skill cells). A generally untested implication of many theories rationalizing the growth of within-group inequality is that firm-level productivity dispersion should also have increased. The relevant data for the US is problematic, so we utilize a UK panel dataset covering the manufacturing and non-manufacturing sectors since the early 1980s. We find evidence that productivity inequality has increased. Existing studies have underestimated this increased dispersion because they use data from the manufacturing sector which has been in rapid decline. Most of the increase in individual wage inequality has occurred because of an increase in inequality between firms (and within industries). Increased productivity dispersion appears to be linked with new technologies as suggested by models such as Caselli (1999) and is not primarily due to an increase in transitory shocks, greater sorting or entry/exit dynamics.
Author: Lucian A. Bebchuk Publisher: Harvard University Press ISBN: 9780674020634 Category : Business & Economics Languages : en Pages : 308
Book Description
The company is under-performing, its share price is trailing, and the CEO gets...a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers' influence over their own pay--and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders. Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm's length with the executives they are meant to oversee. They give a richly detailed account of how pay practices--from option plans to retirement benefits--have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives' unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers' incentives. This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.
Author: Felipe Benguria
Author: Felipe Benguria
Author: OECD
Author: Martim Leitão
Author: Donald Tomaskovic-Devey
Author: Jorge Alvarez
Author: Boris Georgiev
Author: Claudine Madras Gartenberg
Author: Martin Schaller
Author: Giulia Faggio
Author: Lucian A. Bebchuk