Fix, 'Personal Income and Hierarchical Power'
December 9, 2019
This article examines the relation between personal income and hierarchical power. In the context of a firm hierarchy, I define hierarchical power as the number of subordinates under an individual’s control. Using the available case-study evidence, I find that relative income within firms scales strongly with hierarchical power. I also find that hierarchical power affects income more strongly than any other factor for which data is available. I conclude that this is preliminary evidence for a hierarchical-power theory of personal income distribution.
Personal Income and Hierarchical Power
Fix, Blair. (2019). Journal of Economic Issues. No. 53, Issue 4. Dec. pp. 928-945.