Compensation and Span of Control in Hierarchical Organizations

Ángel, Pedro Ortı́n; Salas‐Fumás, Vicente

doi:10.1086/342040

Cited by 16 publications

(9 citation statements)

References 25 publications

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“…Ortín-Ángel and Salas-Fumás (2002) use survey data from a repeated cross-section of 669 Spanish firms for the period 1990-1992. They find that the wage difference between layers is lower than the span of control at any position, and that manager's human capital explains a large fraction of wage differences between layers, suggesting an allocation process of talent along the hierarchy.…”

Section: Introductionmentioning

confidence: 99%

Too many theories, too few facts? What the data tell us about the link between span of control, compensation and career dynamics

Smeets¹,

Warzynski²

2008

Labour Economics

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Section: Introductionmentioning

confidence: 99%

Too many theories, too few facts? What the data tell us about the link between span of control, compensation and career dynamics

Smeets¹,

Warzynski²

2008

Labour Economics

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“…However, this goes against the empirical evidence presented by Caliendo et al. (), Ortín‐Ángel and Salas‐Fumás (), and Colombo and Delmastro (), among others…”

Section: The Modelmentioning

confidence: 64%

Diverse Organizations and the Competition for Talent

Eeckhout

Pinheiro²

2014

International Economic Review

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We propose a theory of firm production that requires diverse inputs. We show that in a competitive labor market, firms differ in their skill composition. Organizations with higher total factor productivity (TFP) are larger and hire from a broader range of skills. Technological progress leads to an increase of all wages and results in downsizing. Quantifying productivity using our model shows that a constant elasticity of substitution (CES) production function generates unbiased estimates of TFP but biased estimates of marginal product and elasticity of substitution across skills. Our model also generates estimates of the TFP distribution based on CEO compensation alone.

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“…After all, holding a particular job position implies having the ability required for the job. Empirical evidence from the same database confirms that human capital variables explain 50% of the compensation differences between hierarchical levels (Ortín‐Ángel and Salas‐Fumàs, 2002). As shown in Table III, controlling for job positions substantially reduces the effects of education and general work experience on compensation (by 60%).…”

Section: Discussionmentioning

confidence: 83%

“…Previous empirical research has found a positive association between human capital variables and compensation, with and without controlling for job positions. Because education and experience come into decisions about job assignments, introducing these variables into a compensation model reduces the explanatory power of human capital variables (Ortín‐Ángel and Salas Fumàs, 2002).…”

Section: Theoretical Discussionmentioning

confidence: 99%

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Compensation Dispersion Between and Within Hierarchical Levels

Ángel

Salas‐Fumás

2007

Economics Manag Strategy

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This paper studies the dispersion around the expected compensation of workers before and after controlling for hierarchical positions in cross-section data samples. From data for Spanish managers, we find that this dispersion decreases with education and work experience before entering the current job and increases with job tenure. This finding contrasts with previous research that finds a positive association between compensation dispersion and education and work experience. We explain the new finding through a model of learning that separates compensation dispersion between jobs and within jobs (hierarchical positions). The model takes advantage of the information revealed when workers are promoted to their current hierarchical positions and allows for more robust tests of learning theories.

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Compensation and Span of Control in Hierarchical Organizations

Cited by 16 publications

References 25 publications

Too many theories, too few facts? What the data tell us about the link between span of control, compensation and career dynamics

Too many theories, too few facts? What the data tell us about the link between span of control, compensation and career dynamics

Diverse Organizations and the Competition for Talent

Compensation Dispersion Between and Within Hierarchical Levels

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