| Título: | Is There Discretion in Wage Setting? A Test Using Takeover Legislation |
| Autores: |
Bertrand, Marianne Mullainathan, Sendhil |
| Fecha: |
2011-10-26 2011-10-26 1998-10-01 |
| Publicador: | Universidad de Princenton |
| Fuente: |
 |
| Tipo: | Working Paper |
| Tema: |
wage settings discretion takeover |
| Descripción: | Anecdotal evidence suggests that uncontrolled managers let wages rise above competitive levels. Testing this popular perception has proven difficult, however, because independent variation in the extent of managerial discretion is needed. In this paper, we use states’ passage of anti-takeover legislation as a source of such independent variation. Passed in the 1980s, these laws seriously limited takeovers of firms incorporated in legislating states. Since many view hostile takeovers as an important disciplining device, these laws potentially raised managerial discretion in affected firms. If uncontrolled managers pay higher wages, we expect wages to rise following these laws. Using firm-level data, we find that relative to a control group, annual wages for firms incorporated in states passing laws did indeed rise by 1 to 2% or about $500 per year. The findings are robust to a battery of specification checks and do not appear to be contaminated by the political economy of the laws or other sources of bias. Our results suggest that discretion significantly affects wages. They challenge standard theories of wage determination which ignore the role of managerial preferences. |
| Idioma: | No aplica |
1 Engineering solutions for a carbon-constrained world por Celia, M. A.,Nordbotten, J. M. | 6 Impact of capillary forces on large-scale migration of CO2 por Nordbotten, Jan M.,Dahle, Helge K. |
2 Analysis of Plume Extent using Analytical Solutions for CO2 Storage por Nordbotten, Jan M.,Celia, Michael A. | 7 Impact of geological heterogeneity on early-stage CO2 plume migration por Ashraf, Meisam,Lie, Knut-Andreas,Nilsen, Halvor M.,Nordbotten, Jan M.,Skorstad, Arne |
3 A model-oriented benchmark problem for CO2 storage por Dahle, Helge K.,Eigestad, Geir T.,Nordbotten, Jan M.,Pruess, K. | 8 CO2 trapping in sloping aqiufers: High resolution numerical simulations por Elenius, Maria,Tchelepi, Hamdi,Johannsen, Klaus |
4 Report from CO2 storage workshop por Dahle, Helge K.,Lien, Martha,Nordbotten, Jan M.,Lie, Knut-Andreas,Braathen, Alvar,Helmig, Rainer,Class, Holger,Celia, Michael A. | 9 Streamline methods for parabolic differential equations por Hafver, Jørn |
5 Summary of Princeton Workshop on Geological Storage of CO2 por Celia, Michael A.,Nordbotten, Jan M.,Bachu, Stefan,Kavetski, Dmitri,Gasda, Sarah | 10 Vertically Averaged Models for CO2 Storage in Porous Media por Hammer, Andreas |