Early computer-investment effects on executive pay depend on business services

Evidence

The effect of computer investment on officers’ share of compensation is mixed. Although the average effect is positive and significant in the first period, the jackknife analysis shows that the result is driven by the business service industry alone. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 138

Categorization

• QUESTION: Why would business services alone drive the computer-investment effect on officer compensation in the early period? Worth chasing the sectoral mechanism behind this fragility.
• XREF: connects to: Early computers boosted finance far more than industrial productivity — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 226; Stock-based executive pay widened CEO-worker income gaps. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 56; Shareholder-value incentive pay enriched managers more than shareholders themselves — Natascha van der Zwan, Making Sense of Financialization, 54 (+1 more)

Related

• Deunionization and import competition drive inequality, but computer investment’s inequality effects are uneven. (similarity 0.81)
• Early computers boosted finance far more than industrial productivity (similarity 0.80)

Broader Connections

• Deunionization and import competition drive inequality, but computer investment’s inequality effects are uneven. #qualifies (0.78) — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 170
• Early computers boosted finance far more than industrial productivity #expands (0.75) — Yanis Varoufakis, Technofeudalism, 226
• Stock-based executive pay widened CEO-worker income gaps. #expands (0.75) — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 56
• Shareholder-value incentive pay enriched managers more than shareholders themselves #expands (0.70) — Natascha van der Zwan, Making Sense of Financialization, 54