Changes in Managerial Pay Structures 1986-1992 and Rising Returns to Skill
AbstractWe examine the relationship between wages and skill requirements in a sample of over 50,000 managers in 39 companies between 1986 and 1992. The data include an unusually good measure of job requirements and skills that can proxy for human capital. We find that wage inequality increased both within and between firms from 1986 and 1992. Higher returns to our measure of skill accounts for most of the increasing inequality within firms. At the same time, our measure of skill does not explain much of the cross-sectional variance in average wages between employers, and changes in returns to skill do not explain any of the time series increase in between-firm variance over time. Finally, we find only weak evidence of any declines in the rigidity of internal wage structures of large employers.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7730.
Date of creation: Jun 2000
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Publication status: published as O'Shaughnessy, K. C., David I. Levine and Peter Cappelli. "Changes In Managerial Pay Structures 1986-1992 And Rising Returns To Skill," Oxford Economic Papers, 2001, v53(3,Jul), 482-507.
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Other versions of this item:
- O'Shaughnessy, K C & Levine, David I & Cappelli, Peter, 2001. "Changes in Managerial Pay Structures 1986-1992 and Rising Returns to Skill," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 482-507, July.
- O'shaughnessy, Kevin C. & Levine, David I. & Cappelli, Peter, 1998. "Changes in Managerial Pay Structures 1986-1992 and Rising Returns to Skill," Institute for Research on Labor and Employment, Working Paper Series qt3cm3820b, Institute of Industrial Relations, UC Berkeley.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-06-12 (All new papers)
- NEP-HIS-2000-06-12 (Business, Economic & Financial History)
- NEP-LAB-2000-06-12 (Labour Economics)
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