| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP5964 |
| DP5964 Linear-Quadratic Approximation of Optimal Policy Problems | |
| Michael Woodford; PIerpaolo Benigno | |
| 发表日期 | 2006-12-03 |
| 出版年 | 2006 |
| 语种 | 英语 |
| 摘要 | This paper studies the effect of changes in foreign competition on the incentives faced by U.S. managers in the form of wage structures, promotion profiles, and job turnover. We use a panel of executives and measure foreign competition as import penetration. Using tariffs and exchange rates as instrumental variables, we estimate the causal effect of globalization on the labour market outcomes of these workers. We find that higher foreign competition leads to more incentive provision in a variety of ways. First, it increases the sensitivity of pay to performance. Second, it raises the return to a promotion and increases pay inequality among the top executives of the firm, with CEOs typically experiencing wage increases while lower-ranking executives see their wages fall. Third, higher competition is associated with a higher probability of leaving the firm. Finally, we show that higher foreign competition also is associated with a higher demand for talent at the top of the firm. These results indicate that increased foreign competition can explain some of the recent trends in compensation structures. |
| 主题 | Labour Economics |
| 关键词 | Incentives Performance-related pay Wage structure Wage ladders Job turnover Promotions Demand for talent Foreign competition Globalization Product market competition |
| URL | https://cepr.org/publications/dp5964 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/534805 |
| 推荐引用方式 GB/T 7714 | Michael Woodford,PIerpaolo Benigno. DP5964 Linear-Quadratic Approximation of Optimal Policy Problems. 2006. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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