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The pay parity matrix - a tool for analysing the structure of pay

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  • Kenneth W. Clements
  • Izan H. Y. Izan

Abstract

This article introduces a new tool for measuring relative pay within organizations. We call this innovation the 'Pay Parity (PP) matrix', and discuss its advantages and useful properties. The PP matrix allows us to conveniently measure, and draw inferences about, the nature of the whole remuneration schedule, such as its gradient and smoothness. We illustrate the application of the PP matrix by using data on the remuneration of academic executives in universities.

Suggested Citation

  • Kenneth W. Clements & Izan H. Y. Izan, 2012. "The pay parity matrix - a tool for analysing the structure of pay," Applied Economics, Taylor & Francis Journals, vol. 44(34), pages 4515-4525, December.
    • Handle: RePEc:taf:applec:v:44:y:2012:i:34:p:4515-4525
    DOI: 10.1080/00036846.2011.591738
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    Cited by:

    1. Long Hai Vo, 2023. "Understanding International Price and Consumption Disparities," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(2), pages 443-473, June.
    2. Mei-Hsiu Chen & Kenneth W Clements & Grace Gao, 2013. "Three Facts About World Metal Prices," Economics Discussion / Working Papers 13-01, The University of Western Australia, Department of Economics.
    3. Mei-Hsiu Chen & Kenneth W Clements, 2012. "Patterns in World Metals Prices," Economics Discussion / Working Papers 12-08, The University of Western Australia, Department of Economics.
    4. Jiawei Si, 2021. "Executive Remuneration In The Public Sector: How Different To The Private Sector?," Economics Discussion / Working Papers 21-09, The University of Western Australia, Department of Economics.

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