Tagged: inequality

CEO Pay - The Dismal Science

Eric Crampton May 07, 2015

I reprised this post at a symposium on CEO pay at Otago University on Friday.Here's my presentation - I had a half-hour to generally survey the lit on why CEOs are paid what they're paid.  Note that I here overestimated the pay ratio in New Zeala... Read More

Harford on inequality - The Dismal Science

Paul Walker May 06, 2015

At his blog Tim Harford has been writing on The truth about inequality. He says,How serious a problem is inequality? And if it is serious, what can be done about it?Myths abound. Many people seem to believe that Thomas Piketty’s Capital in the Twenty-First Century showed that wealth inequality is at an all-time high; instead, his data show … Read More

GST confusion - The Dismal Science

Eric Crampton Apr 19, 2015

In last week's NZ Initiative "Insights" newsletter, I'd hit on public misunderstandings around GST. People think taking GST off food would be strongly progressive, because poor people spend a greater fraction of their income on food, but richer cohorts get a much larger fraction of the total benefit because they spend more in total on food. If you want … Read More

Wage inequality and firm growth - The Dismal Science

Paul Walker Mar 27, 2015

At VoxEU.org Holger Mueller, Paige Ouimet and Elena Simintzi look at the relationship between Wage inequality and firm growth. Rising wage inequality has received much attention recently and this column describes new evidence on the determinants of the 'skill premium'.There are two basic findings:1) larger firms have grown substantially and 2) skill premia are larger at … Read More

Wealth heritability - The Dismal Science

Eric Crampton Feb 27, 2015

Swedish income and wealth are strongly heritable, as measured by differences between monozygotic and dizygotic twin outcome variances.These patterns of correlations illustrate Turkheimer's (2000) three “laws” of behavior genetics, which are not theoretical necessities, but rather stylized facts that summarize the broad pattern of empirical findings in several decades of behavior genetics studies. The first law states that … Read More