We develop a model that clarifies how to measure CEO incentive strength and how to reconcile the enormous differences in pay sensitivities between executives in large and small firms. The crucial parameter is shown to be the elasticity of CEO productivity with respect to firm size. We find that...

We estimate how 197090 changes in an outcome-based measure of school quality (state average test scores) affected changes in earnings for those leaving high school to enter a state's labor force. We find that a one standard deviation deterioration in a state's relative test score performance is...