Over the past twenty years there has been a dramatic increase in both CEO pay and the wealth of the richest Americans. We hypothesize that the increase in CEO pay is due to the same economy-wide factors that have increased the asset value of the wealthiest Americans. We test this hypothesis by...

We analyze the effect of CEO pay disclosure on wage distribution by exploiting a 1998 reform requiring Italian publicly listed companies to disclose top executives' compensation. In firms where CEOs disclose high total compensation, the top 5 percent and 1 percent of the within-firm wage...

We consider the cost of providing incentives using tournaments when workers are inequity averse and performance evaluation is costly. The principal never benefits from empathy to align incentives in a moral hazard framework between the workers, but he may benefit from their propensity for envy...

Merit and justice / Amartya Sen -- Equality of opportunity / John E. Roemer -- IQ trends over time: intelligence, race, and meritocracy / James R. Flynn -- Genes, culture, and inequality / Marcus W. Feldman, Sarah P. Otto, and Freddy B. Christiansen -- Schooling, intelligence, and income in...