The pay parity matrix - a tool for analysing the structure of pay

Kenneth Clements and Izan H. Y. Izan

Applied Economics, 2012, vol. 44, issue 34, 4515-4525

Abstract: This article introduces a new tool for measuring relative pay within organizations. We call this innovation the 'Pay Parity (PP) matrix', and discuss its advantages and useful properties. The PP matrix allows us to conveniently measure, and draw inferences about, the nature of the whole remuneration schedule, such as its gradient and smoothness. We illustrate the application of the PP matrix by using data on the remuneration of academic executives in universities.

Date: 2012
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Working Paper: The Pay Parity Matrix A Toll For Analysing The Structure of Pay (2010)
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DOI: 10.1080/00036846.2011.591738

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