How to Reduce the Incomes of the Two Labour Elites?
In Western countries the share of incomes form assets in national income has fallen considerably during the last century. Inequality in labour incomes is much more important. Two types of labour show relatively high incomes: the professions and managers. incomes of the former show along-term relative decline due to a sharp increase in university graduates. The author offers a crude attempt to compare manager incomes in the U.S.A. with the sine of the enterprise they are heading. He then poses question whether manager incomes may be reduced further in comparison to average incomes by increasing their supply. This depends on whether manager capabilities are Iearnable or mainly innate. He concludes with some remarks on the demand for managers in a post-industrial society.
Tinbergen, J.. (1977). How to Reduce the Incomes of the Two Labour Elites?. European Economic Review. Retrieved from http://hdl.handle.net/1765/7968