The Experts below are selected from a list of 20796 Experts worldwide ranked by ideXlab platform
Stijn Van Nieuwerburgh - One of the best experts on this subject based on the ideXlab platform.
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Technological Change and the Growing Inequality in Managerial Compensation
Journal of Financial Economics, 2011Co-Authors: Hanno Lustig, Chad Syverson, Stijn Van NieuwerburghAbstract:Three of the most fundamental changes in US corporations since the early 1970s have been (1) the increased importance of organizational capital in production, (2) the increase in managerial income Inequality and pay-performance sensitivity, and (3) the secular decrease in labor market reallocation. Our paper develops a simple explanation for these changes: a shift in the composition of productivity growth away from vintage-specific to general growth. This shift has stimulated the accumulation of organizational capital in existing firms and reduced the need for reallocating workers to new firms. We characterize the optimal managerial compensation contract when firms accumulate organizational capital but risk-averse managers cannot commit to staying with the firm. A calibrated version of the model reproduces the increase in managerial compensation Inequality and the increased sensitivity of pay to performance in the data over the last three decades.
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IT, Corporate Payouts, and the Growing Inequality in Managerial Compensation
2008Co-Authors: Stijn Van Nieuwerburgh, Chad Syverson, Hanno LustigAbstract:Three of the most fundamental changes in US corporations since the early 1970s have been (1) the increase in the importance of organizational capital in production, (2) the increase in managerial income Inequality, and (3) the increase in payouts to the owners. There is a unified explanation for these changes: The arrival and gradual adoption of information technology since the 1970s has stimulated the accumulation of organizational capital in existing firms. Since owners are better diversified than managers, the optimal division of rents from this organizational capital has the owners bear most of the cash-flow risk. In our model, the IT revolution benefits the owners and the managers in large successful firms, but not the managers in small firms. The resulting increase in managerial compensation Inequality and the increase in payouts to owner's compare favorably to those we establish in the data.
William W. Franko - One of the best experts on this subject based on the ideXlab platform.
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State Responses to Federal Inaction and Growing Inequality
Oxford Scholarship Online, 2017Co-Authors: William W. Franko, Christopher WitkoAbstract:In this chapter the authors return to aggregate data to examine how the state minimum wage has responded to a Growing awareness of Inequality and other state political factors. The minimum wage was initially pursued by the states a number of years before the federal government adopted a minimum wage in the 1930s. However, the minimum wage law is still jointly controlled by the states and the federal government, allowing us to directly examine how federal inaction in raising the minimum wage spurs state minimum wage increases. The results show that federal inaction, a public awareness of Growing Inequality, and state government liberalism are significant predictors of increases in state minimum wages. The minimum wage is more likely to be increased in states with the initiative, even sometimes in states that are usually considered to be relatively conservative.
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Growing Inequality and Public Awareness of Inequality in the States
Oxford Scholarship Online, 2017Co-Authors: William W. Franko, Christopher WitkoAbstract:Here the authors present the variation that exists in income Inequality across the states, and variation in public awareness or concern about income Inequality as measured by public opinion polls. Though politicians may decide to tackle income Inequality even in the absence of public concern about Inequality, the authors argue that government responses are more likely when and where there is a Growing awareness of, and concern about, Inequality, which is confirmed in the analyses in this book. To examine this question in subsequent chapters, a novel measure of public awareness of rising state Inequality is developed. Using these estimates, this chapter shows that the growth in the public concern about Inequality responds in part to objective increases in Inequality, but also that state political conditions, particularly mass partisanship, shape perceptions of Inequality.
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political context government redistribution and the public s response to Growing economic Inequality
The Journal of Politics, 2016Co-Authors: William W. FrankoAbstract:While most Americans appear to acknowledge the large gap between the rich and the poor in the United States, it is not clear how the public has responded to recent changes in income Inequality. The goal of this study is to make sense of several existing, and at times conflicting, perspectives on how changes in Inequality affect public preferences for government action, by demonstrating that each of these perspectives can simultaneously coexist in a logical manner. The argument put forward here is that Growing Inequality systematically shapes preferences for redistribution in different ways, depending on two important factors: economic context and the type of redistribution being considered. Using time-series cross-sectional data covering over three decades and all 50 states, the findings show that context does affect the degree of the public’s response to Inequality and that support for action is stronger for particular types of redistributive policy.
Hanno Lustig - One of the best experts on this subject based on the ideXlab platform.
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Technological Change and the Growing Inequality in Managerial Compensation
Journal of Financial Economics, 2011Co-Authors: Hanno Lustig, Chad Syverson, Stijn Van NieuwerburghAbstract:Three of the most fundamental changes in US corporations since the early 1970s have been (1) the increased importance of organizational capital in production, (2) the increase in managerial income Inequality and pay-performance sensitivity, and (3) the secular decrease in labor market reallocation. Our paper develops a simple explanation for these changes: a shift in the composition of productivity growth away from vintage-specific to general growth. This shift has stimulated the accumulation of organizational capital in existing firms and reduced the need for reallocating workers to new firms. We characterize the optimal managerial compensation contract when firms accumulate organizational capital but risk-averse managers cannot commit to staying with the firm. A calibrated version of the model reproduces the increase in managerial compensation Inequality and the increased sensitivity of pay to performance in the data over the last three decades.
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IT, Corporate Payouts, and the Growing Inequality in Managerial Compensation
2008Co-Authors: Stijn Van Nieuwerburgh, Chad Syverson, Hanno LustigAbstract:Three of the most fundamental changes in US corporations since the early 1970s have been (1) the increase in the importance of organizational capital in production, (2) the increase in managerial income Inequality, and (3) the increase in payouts to the owners. There is a unified explanation for these changes: The arrival and gradual adoption of information technology since the 1970s has stimulated the accumulation of organizational capital in existing firms. Since owners are better diversified than managers, the optimal division of rents from this organizational capital has the owners bear most of the cash-flow risk. In our model, the IT revolution benefits the owners and the managers in large successful firms, but not the managers in small firms. The resulting increase in managerial compensation Inequality and the increase in payouts to owner's compare favorably to those we establish in the data.
Anne Hartung - One of the best experts on this subject based on the ideXlab platform.
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Malaise in the Western Middle Classes
Social Science Research Network, 2016Co-Authors: Louis Chauvel, Anne HartungAbstract:The living conditions and well-being of the middle class are traditionally considered an expression of how society is progressing. Yet Growing Inequality and the polarization of incomes observed in Western countries due to globalization, the recession and rapid technological change, is leading to what has been described as a “malaise of the middle class”. This article presents the evolution of the income distribution in selected Western countries and discusses the possible impact of the threat created by downward mobility and the erosion of the middle class in today's society.
Bilal Malaeb - One of the best experts on this subject based on the ideXlab platform.
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IFAD RESEARCH SERIES 27 - Asia’s rural-urban disparity in the context of Growing Inequality
2018Co-Authors: S.k. Imai, Bilal MalaebAbstract:This study offers empirical evidence on the rural-urban gap in the context of Growing Inequality in Asia. First, China and India explain the trends in regional Inequality given their large populations, signifying their importance as major contributors. Overall, China’s income Inequality is characterized by rural-urban disparity, but the Inequality within rural and within urban areas has worsened, although the country has experienced very high economic growth. India is mainly characterized by high Inequality within urban areas, despite a sharp reduction in urban poverty. India’s rural-urban income gap has narrowed in recent years. We also find that the rural-urban income gap has narrowed in many other countries, such as Thailand and Viet Nam. Second, our econometric results on the agricultural and non-agricultural income gap suggest that a higher non-agricultural growth rate tends to widen the rural-urban gap over time, while agricultural growth is unrelated to the rural-urban gap. Third, the rural-urban human resources gap in terms of educational attainment has increased in both China and India. Policies that promote agricultural growth and rural education are deemed important not only for reducing rural poverty but also for narrowing the rural-urban human resources gap.
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Asia's Rural-urban Disparity in the Context of Growing Inequality
2016Co-Authors: Katsushi S. Imai, Bilal MalaebAbstract:This study offers empirical evidence on the rural-urban gap in the context of Growing Inequality in Asia. First, China and India explain the trends of regional Inequality given their large population, signifying their importance as major contributors. Overall, China’s income Inequality is characterised by rural-urban disparity, but the Inequality within-rural and/or within urban areas has worsened, although it experienced very high economic growth. India is mainly characterised by high Inequality within urban areas despite a sharp reduction in urban poverty. Rural-urban income gap has narrowed in recent years. We also find that the rural and urban income gap has narrowed in many countries, such as, India, Vietnam and Thailand. Second, our econometric results on the agricultural and non-agricultural income gap suggest that higher non-agricultural growth rate tends to widen the urban-rural gap over time, while agricultural growth is unrelated to the rural-urban gap. Third, the rural-urban human resources gaps in terms of educational attainment have increased in both India and China. Fourth, remittances are likely to reduce poverty in many countries. Policies which would promote agricultural growth and rural education are deemed important not only for reducing rural poverty, but also for narrowing the rural-urban gap of human resources.
