The Corporate Gini Index (CGI) determinants and advantages: Lessons from a multinational retail company case study

Morais, Filipe; Kakabadse, Nada K.

doi:10.1057/jdg.2014.4

Cited by 19 publications

(27 citation statements)

References 24 publications

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“…The most direct evidence for hierarchical organization comes from firm case studies [57][58][59][60][61][62]. Fig 2 shows the hierarchical structure of six case-study firms (which come from Britain, the Netherlands, Portugal, and the United States).…”

Section: Institution Size and Hierarchymentioning

confidence: 99%

Energy, Hierarchy and the Origin of Inequality

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2018

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Where should we look to understand the origin of inequality? I propose an unusual window of evidence --- modern societies. I hypothesize that evidence for the origin of inequality is encoded in the institutional structure of industrial societies. To test this idea, I use a model to project modern trends into the past. This model takes the modern relation between energy, hierarchy, and inequality and creates a hindcast of the origin of inequality. The results are broadly consistent with the available evidence. The model predicts an explosion of inequality with the transition from hunter-gathering to agriculture, followed by a plateau. This finding potentially opens a new window of evidence into the origin of inequality.

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Section: Institution Size and Hierarchymentioning

confidence: 99%

Energy, Hierarchy and the Origin of Inequality

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2018

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“…properties of the distribution tail are captured by a single parameter-the power-law exponent. Since Pareto's initial discovery, the power-law scaling of top incomes has been re-confirmed many times (for a non-exhaustive list, see [2][3][4][5][6][7][8][9][10][11][12]). What causes this nearly universal behavior?…”

Section: Introductionmentioning

confidence: 99%

Hierarchy and the power-law income distribution tail

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2018

J Comput Soc Sc

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What explains the power-law distribution of top incomes? This paper tests the hypothesis that it is firm hierarchy that creates the power-law income distribution tail. Using the available case-study evidence on firm hierarchy, I create the first large-scale simulation of the hierarchical structure of the US private sector. Although not tuned to do so, this model reproduces the power-law scaling of top US incomes. I show that this is purely an effect of firm hierarchy. This raises the possibility that the ubiquity of power-law income distribution tails is due to the ubiquity of hierarchical organization in human societies.

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“…Average income vs. hierarchical power within case-study firms Note: This figure shows data from six firm case studies (Audas et al, 2004;Baker et al, 1993;Dohmen et al, 2004;Lima, 2000;Morais and Kakabadse, 2014;Treble et al, 2001). The vertical axis shows average income within each hierarchical level of the firm (relative to the base level), while the horizontal axis shows my metric for average power, which is equal to one plus the average number of subordinates below a given hierarchical level.…”

Section: Figurementioning

confidence: 99%

The Trouble with Human Capital Theory

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2018

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Human capital theory is the dominant approach for understanding personal income distribution. According to this theory, individual income is the result of ‘human capital’. The idea is that human capital makes people more productive, which leads to higher income. But is this really the case? This paper takes a critical look at human capital theory and its explanation of personal income distribution. I find that human capital theory’s claims are dubious at best. In most cases, the theory is either not supported by evidence, is so vague that it is untestable, or is based on circular reasoning. In short, human capital theory is a barrier to the scientific study of income distribution.

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The Corporate Gini Index (CGI) determinants and advantages: Lessons from a multinational retail company case study

Cited by 19 publications

References 24 publications

Energy, Hierarchy and the Origin of Inequality

Energy, Hierarchy and the Origin of Inequality

Hierarchy and the power-law income distribution tail

The Trouble with Human Capital Theory

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