공지사항

2021.05.07 BK 금요세미나-김지희 교수님(카이스트)

작성일 2021-05-03

파일

안녕하세요, 경제학과 BK사무실입니다.
경제학과 BK21 교육연구단에서 아래와 같이 금요세미나를 개최합니다.
이번 세미나는 온라인으로만 진행될 예정입니다. 많은 참여 부탁드립니다.

- 일시 : 2021년 5월 7일 (금) 16:30 - 18:00
- 발표자 : 김지희 교수님(카이스트)
- 주제 : Institutional Changes and CEO Pay Inequality
- 온라인 참석 링크(WebEx) : BK사무실 문의

Abstract:

Inequality within top incomes in the U.S. had been continuously increasing until the Great Recession since the 1980s, and then showed a modest decline in recent years after the recession. Inequality among the top executives, who form the largest group at the top of the income distribution, has shown a similar trend in their pay distribution while the inequality in the firm size distribution has been relatively constant (Zipf's law). This is puzzling if CEO pays are assumed to be tied to the firm size. Using Compustat and Execucomp data since 1992, we first document the puzzle by showing changes in CEO pay distribution and its relationship to firm size distribution, revisiting \cn{GabaixLandier2008} and Roberts' law. We then propose a theoretical model to show that institutional environments surrounding CEO compensation can affect CEO pay inequality, while the firm size distribution remains stable. In particular, our theoretical model predicts that the CEO pay distribution becomes more equal when it becomes more difficult to raise a CEO pay in the pay bargaining. This result is consistent with the recent decline in inequality following institutional changes to limit executive compensations after the Great Recession.