Promotions, demotions, halo effects and earnings dynamics of American executives
By: by Christian Belzil, Michael Bognanno.
Contributors: Bognanno, Michael, 1962-
Series: Discussion paper ;; no. 1630; Discussion paper (Forschungsinstitut zur Zukunft der Arbeit : Online) ;; no. 1630
Publisher: IZA
Published: 2005
Place of publication: Bonn, Germany
Language: eng
Format: Electronic resource
Subjects: Executives -- Salaries, etc. -- United States.
Description: "This paper explores the dynamics of wage growth in corporate hierarchies. Using panel data techniques, we estimate the causal effect of current and past transitions in reporting level and past earnings growth on components of current earnings and earnings growth using a large panel of US executives. After conditioning on unobserved heterogeneity, current compensation growth is positively correlated with past promotion outcomes but negatively correlated with past compensation growth. In a flexible model of wage growth, there is an important asymmetry between the effect of a promotion and a demotion. The effect of promotion is smaller in magnitude than the effect of a demotion. The causal effect of a promotion is positive on both growth in base pay and total cash compensation but is negative on bonus growth. The effect of a demotion is negative on growth in all pay components"--Forschungsinstitut zur Zukunft der Arbeit web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 6/13/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.