— EPI Chart Bot (@epichartbot) January 13, 2016
Non-cognitive skills by socioeconomic quintile
13 Jan 2016 Leave a comment
in economics of education, human capital
Percentage of American men and women aged 25 to 29 with bachelors degree or higher, 1971 – 2013
13 Jan 2016 1 Comment
in discrimination, economic history, economics of education, gender, human capital, labour economics Tags: College premium, education premium, graduate premium, reversing gender gap
The gender gap in higher education reversed in the year 2000
More on the reversing gender pay gap or men getting their comeuppances?
10 Jan 2016 Leave a comment
in discrimination, economic history, gender, human capital, labour economics, labour supply, occupational choice, politics - USA Tags: gender wage gap, middle class stagnation, reversing gender gap, wage stagnation
The rise of the Canadian working super-rich – composition of top 0.1% incomes since 1946
09 Jan 2016 Leave a comment
in applied welfare economics, economic history, human capital, labour economics, poverty and inequality Tags: Canada, superstars, superstore wages, top 0.1%, top incomes
Source: The World Wealth and Income Database.
Did the rich get richer under Rogernomics? New Zealand top income shares since 1921
09 Jan 2016 Leave a comment
in applied welfare economics, economic history, human capital, labour economics, politics - New Zealand, poverty and inequality Tags: Leftover Left, superstar wages, superstars, top incomes
Apart from a bump in the late 80s, the top income earners in New Zealand really are not doing much better than they were in the 1950s or 1920s. The rich are not getting richer in New Zealand. They are just holding their own.
Source: The World Wealth and Income Database.
The rise of the Canadian working rich – composition of top 1% incomes since 1946
08 Jan 2016 Leave a comment
in applied welfare economics, economic history, human capital, labour economics, poverty and inequality Tags: Canada, superstar wages, superstars, top 1%, working rich
Source: The World Wealth and Income Database.
The rise of the working rich in Australia – top income compositions since 1954
08 Jan 2016 Leave a comment
in economic history, human capital, labour economics, politics - Australia, poverty and inequality Tags: Australia, superstar wages, superstars, top incomes, working rich
Over the course of the post-war period top incomes in Australia turned into top wage earners. It is unfortunate that information is not available on the extent to which business incomes make up the balance of top incomes as distinct from dividend incomes.
Source: The World Wealth and Income Database.
Loury and McWhorter tackle the racial mismatch hypothesis and Affirmative Action
23 Dec 2015 Leave a comment
in discrimination, economics of education, human capital, labour economics Tags: affirmative action, racial discrimination
Do they have academic tenure anymore?
23 Dec 2015 Leave a comment
in economics of education, human capital, labour economics, managerial economics, occupational choice, organisational economics, personnel economics Tags: academic tenure, compensating differentials, occupational choice
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Earning power by personality type
22 Dec 2015 Leave a comment
in human capital, labour economics, labour supply, occupational choice Tags: economics of personality traits
Which occupations are up and which are down
21 Dec 2015 Leave a comment
in economic history, human capital, industrial organisation, labour economics, labour supply, occupational choice, survivor principle Tags: creative destruction, skill biased technical change
Roland Fryer on Education, Inequality, & Incentives
19 Dec 2015 1 Comment
in applied price theory, discrimination, economics of education, gender, human capital, labour economics, labour supply, politics - New Zealand, politics - USA, poverty and inequality Tags: charter schools, racial discrimination, Roland Fryer
The gender gap among the top 1%
19 Dec 2015 Leave a comment
in discrimination, gender, human capital, labour economics, occupational choice Tags: gender wage gap, superstar wages, superstars, top 1%
Earnings distribution by level of education
13 Dec 2015 Leave a comment
in economics of education, human capital, labour economics Tags: College premium, education premium, graduate premium, high school dropouts
Are CEOs denied their labour surplus?
11 Dec 2015 Leave a comment
in applied price theory, entrepreneurship, fisheries economics, human capital, industrial organisation, labour economics, labour supply, managerial economics, occupational choice, organisational economics, personnel economics, survivor principle Tags: CEO pay, moral hazard, promotion tournaments, superstar, superstar wages
Bang Dang Nguyen and Kasper Meisner Nielsen looked at how share prices reacted to 149 cases of the chief executive or another prominent manager dying suddenly in American companies between 1991 and 2008.
If the shares rise on an executive’s death, he was overpaid; if they fall, he was not. Only 42% of the bosses studied were overpaid. Those with the bigger pay packages gave the best value for money as measured by the share-price slump when they passed away unexpectedly.
Share prices do speak to the value of the company and the contribution of its CEO. The share price of Apple went up and down by billions on the back of rumours about the health of Steve Jobs.
In terms of splitting of what some call the labour surplus increase from a firm hiring an executive, these employees retain on average about 71% and their employer keeps 29%. Others call this rent sharing.
71% going to the CEO might initially sound high, “but it’s not like he’s taking home more than he produced for the company,” says Nguyen.
The exploitation of CEOs gets worse when you consider the extensive use of promotion tournaments by their employers when setting their wages. They are thrust into rat races. Promotion tournaments are an integral and often invisible part of their workplaces.
Executive level employees are often ranked by their employers relative to each other and promoted not for being good at their jobs but for being better than their rivals. These promotion tournaments sent one employee against another – one worker against another – to the profit of the owners of the firm.
The rat race set up by the owners of the firm are so cutthroat that in competitions to determine promotions the capitalists who own the firm may find that their employees discover that the most efficient way of winning a promotion is by sabotaging the efforts of their rivals.
Lazear and Rozen’s tournament theory of executive pay has stood the test of time. The key to this rat race is the larger is your boss’s pay, the bigger the motivation for you as an underling to work for a promotion. As Lazear wrote in his book, Personnel Economics for Managers
The salary of the vice president acts not so much as motivation for the vice president as it does as motivation for the assistant vice presidents.
Utopia, you are standing in it! 
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