Personal Income and Hierarchical Power
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Blair Fix: York University
No pb475, SocArXiv from Center for Open Science
This paper examines the relation between personal income and hierarchical power. In the context of a firm hierarchy, I define hierarchical power as the number of subordinates under an individual’s control. Using the available case-study evidence, I find that relative income within firms scales strongly with hierarchical power. I also find that hierarchical power affects income more strongly than any other factor for which data is available. I conclude that this is preliminary evidence for a hierarchical-power theory of personal income distribution.
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:pb475
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