Extreme Wage Inequality: Pay at the Very Top
Brian D. Bell, John Van Reenen
American Economic Review · 2013 · Volume 103 · Issue 3
Abstract
We provide new evidence on the growth in pay at the very top of the wage distribution in the United Kingdom. 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 United Kingdom. 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.
Keywords
Personal Income, Wealth, and Their Distributions, Wage Level and Structure, Wage Differentials, Personnel Management, Executive Compensation
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