IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v83y1993i5p1241-59.html
   My bibliography  Save this article

Fairness, Markets, and Ability to Pay: Evidence from Compensation Executives

Author

Listed:
  • Levine, David I

Abstract

This paper examines a unique data set based on surveys of 139 compensation executives. Respondents read scenarios describing a hypothetical company and its labor market, and recommended wage changes for several positions. Contrary to some popular theories, differences in unemployment, quit rates, and a company's return on assets led to almost no change in respondents' recommended wage increases. When market wages for closely related occupations diverged, most respondents did not recommend adjusting relative wages within the company; but when the occupations were not closely related (blue versus white collar), most respondents recommended adjusting relative wages to reflect market forces. Copyright 1993 by American Economic Association.

Suggested Citation

  • Levine, David I, 1993. "Fairness, Markets, and Ability to Pay: Evidence from Compensation Executives," American Economic Review, American Economic Association, vol. 83(5), pages 1241-1259, December.
    • Handle: RePEc:aea:aecrev:v:83:y:1993:i:5:p:1241-59
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0002-8282%28199312%2983%3A5%3C1241%3AFMAATP%3E2.0.CO%3B2-8&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:83:y:1993:i:5:p:1241-59. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.