Extreme Wage Inequality: Pay at the Very Top
AbstractWe provide new evidence on the growth in pay at the very top of the wage distribution in the UK. Sectoral decompositions show that workers in the financial sector have accounted for the majority of the gains at the top over the last decade. New results are also presented on the pay of CEOs in the UK. We show how improved measurement of pay points to a stronger pay-performance link than previously estimated. This link is stronger, and more symmetric, for those firms in which institutional investors play a larger role.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Occasional Papers with number 34.
Date of creation: Feb 2013
Date of revision:
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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEPOP
wage inequality; firm performance; CEO compensation; performance pay; management;
Other versions of this item:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executives; Executive Compensation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-25 (All new papers)
- NEP-BEC-2013-10-25 (Business Economics)
- NEP-HME-2013-10-25 (Heterodox Microeconomics)
- NEP-HRM-2013-10-25 (Human Capital & Human Resource Management)
- NEP-LMA-2013-10-25 (Labor Markets - Supply, Demand, & Wages)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steven N. Kaplan & Joshua Rauh, 2010.
"Wall Street and Main Street: What Contributes to the Rise in the Highest Incomes?,"
Review of Financial Studies,
Society for Financial Studies, vol. 23(3), pages 1004-1050, March.
- Steven N. Kaplan & Joshua Rauh, 2010. "Wall Street and Main Street: What Contributes to the Rise in the Highest Incomes?," NBER Chapters, in: Corporate Governance National Bureau of Economic Research, Inc.
- Steven N. Kaplan & Joshua Rauh, 2007. "Wall Street and Main Street: What Contributes to the Rise in the Highest Incomes?," NBER Working Papers 13270, National Bureau of Economic Research, Inc.
- Kneer, E.C., 2013. "Essays on the size of the financial aector, financial liberalization and growth," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5930486, Tilburg University.
- Pierre Chaigneau & Nicolas Sahuguet, 2014. "Explaining the Association between Monitoring and Controversial CEO Pay Practices: an Optimal Contracting Perspective," Cahiers de recherche 1406, CIRPEE.
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