Changes in Management Intensity, Management Wage Premium, and Employment Growth Across the U.S. Economy 2002 to 2020

Abstract

With 228 matched U.S. industries for 2002 and 2020, aggregated data has slightly rising management intensity (MI), defined as management's share of total employment, and minimally declining management wage premium (MWP), defined as the average wage for management divided by the average wage for all other workers. Meaningful pattern differences in MI and MWP across economic sectors are found along with unconditional divergence from 2002 to 2020 in MI, but unconditional convergence in MWP from 2002 to 2020. No association is found between MI and total employment growth, but a negative association between MWP and total employment growth exists.