Channels of Managerial Capital Accumulation - A Framework and New Evidence from UK Microdata

Organisational capital is usually estimated indirectly, from workforce data or as a residual from balance sheets. In this paper, we focus on a particular subset of organisational capital: managerial capital. We propose a comprehensive framework for measuring the contribution of different channels of managerial capital accumulation, investigate how to measure them in UK microdata sources, and highlight the trade-offs involved in the available choices. We then use novel evidence on the distribution of management scores in Great Britain from the Management and Expectations Survey (MES) to empirically assess the relative importance of these different accumulation channels. Our analysis provides a user guide for other researchers and new facts about managerial capital in Great Britain. We find high correlations between the different channels of managerial capital accumulation, and distinct bundles of choices across industries and types of firms.