Holger M. Mueller|Paige Ouimet|Elena Simintzi
Within-Firm Pay Inequality
New York University|Center for Economic and Policy Research|University of North Carolina at Chapel Hill|University of British Columbia
financial regulators investors expressed concerns high pay inequality within firms using proprietary data set public private firms paper shows firms higher pay inequalityrelative wage differentials top bottomlevel jobsare larger higher valuations stronger operating performance moreover firms higher pay inequality exhibit larger equity returns greater earnings surprises suggesting pay inequality fully priced market results support notion differences pay inequality across firms reflection differences managerial talent received march 14 2016 editorial decision january 21 2017 editor itay goldstein