Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76224
Authors: 
Gersbach, Hans
Schmutzler, Armin
Year of Publication: 
2007
Series/Report no.: 
Working Paper, Socioeconomic Institute, University of Zurich 0706
Abstract: 
To examine the impact of globalization on managerial compensation, we consider a matching model where a number of firms compete both in the product market and in the managerial market. We show that globalization, i.e. the simultaneous integration of product markets and managerial pools, leads to an increase in the heterogeneity of managerial salaries. Typically, while the most able managers obtain a wage increase, less able managers are faced with a reduction in wages. Hence our model can explain the increasing heterogeneity of CEO compensation that has been observed in the last few decades.
Subjects: 
globalization
manager remuneration
superstars
JEL: 
D43
F15
J31
L13
Document Type: 
Working Paper

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