The Distributional Effect of Trade on the CEO Market

CORREA-ALLAMAND, JUAN LUIS; PARRO-GRECO, FRANCISCO JAVIER; SANCHEZ-FERNANDEZ, RAFAEL EUGENIO

Abstract

We study the relationship between trade openness and CEO pay dispersion across firms. Using US firm-level data, we show that trade has an unequal effect on CEO equilibrium pay at firms of different sizes (sales). An increase of 10% in the industry openness degree raises CEO compensation by about 14% in firms at the 99th percentile of the size distribution. However, CEO compensation falls by 5% in firms at the 1st percentile. Analogous results are derived for other points of the distribution. Our results show that trade openness impacts inequality within the very top of the income distribution, where skill differentials are less evident.

Más información

Título según WOS: The Distributional Effect of Trade on the CEO Market
Título según SCOPUS: ID SCOPUS_ID:85140014668 Not found in local SCOPUS DB
Título de la Revista: Economica
Volumen: 90
Fecha de publicación: 2023
Página de inicio: 111
Página final: 139
DOI:

10.1111/ECCA.12447

Notas: ISI, SCOPUS