As a result of their capacity to provide inducements that are preferable to other conceivable hiring destinations (Stefanescu-Mihaila, 2015), companies that supply greater pay dispersion
by comparison with competitors should be more advantageously placed to maintain their high performing personnel.
Option-grant rigidity is also consistent with the sharp rise in the correlation between CEO pay and stock returns during the 1990s, and with the increase in CEO pay dispersion
during the tech boom.
Executive pay dispersion
has a significant impact on how top management teams (TMTs) function and how their organizations perform.
Does pay dispersion
have a positive or negative effect on work performance?
"The basic concept of tracking pay dispersion
within boundaries is where concern with fair pay must lead.
Using a unique dataset of test scores for every individual admitted into an Australian university between 1989 and 2003, Leigh explores how changes in average pay or pay dispersion
affect the decision to enter teacher education courses in the eight states and territories that make up Australia.
Confining the analysis to the wage structure and pay dispersion
misses some of the major changes that have occurred in the pubic sector in Australia.
Second, union wage policies within and across firms lower pay dispersion
. Unions' minimum wage targets also truncate the lower tail of the union distribution.
The second is narrow pay dispersion
, which can lead to less of a gender wage differential when women are concentrated in lower-paying jobs.
Considering the rest of the distribution over a long time period yields further insights about pay dispersion
and the gender gap, ignored by the mean decomposition.
In all three instances, controlling for numerous other predictors, we observed statistically and substantively significant negative effects of pay dispersion
. People were less satisfied, there was less collaboration on research, and research productivity and recent research output were lower the more dispersed pay distributions were.
Does the degree of pay dispersion
differ by occupation?