A labor market analysis of executive earnings

Abstract

<p>The present study suggests a model of executive earnings based on the labor market concepts of demand and supply. On the demand side, it includes several measures of executive job complexity and employer's ability to pay. On the supply side , it includes executive characteristics such as education and experience. The empirical analysis indicates that these variables account for a significant proportion of the variance in executive earnings. The factors on the demand side, however, appear to be more important than those on the supply side. Also, contrary to the popular-belief, the present study demonstrates that the factors associated with executive earnings are both identifiable and quantifiable •</p>