Research from Professor Melanie Wallskog shows newer firms pay workers differently than older firms
Pay policies of firms entering the market in recent years are showing a pattern that might forecast more inequality in the future. Research shows newer firms have higher levels of pay inequality than older firms.
Melanie Wallskog, an assistant professor of finance at Duke University’s Fuqua School of Business, examined payroll data from the U.S. Census Bureau and found that firms that entered the market after the 2010s are more spread out in how they pay their average workers than firms that entered in the past. And since pay-setting policies rarely change during the life cycle of companies, these findings might also imply a rise in earning inequality among workers in the coming decades.
[This article has been reproduced with permission from Duke University's Fuqua School of Business. This piece originally appeared on Duke Fuqua Insights]