The Personal Distribution of Income

Steindl, Josef

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Document type:: Works

Collection:: Josef Steindl Collection

Title:: The Personal Distribution of Income

Author:: Steindl, Josef

Scope:: Typoskript, 28 Seiten

Year of publication:: 1972

Source material date:: August-September 1972

Language:: English

Note:: Mit handschriftlichen Anmerkungen.

Related work:: Steindl, Josef: The Personal Distribution of Income. In: Steindl, Josef: Economic Papers 1941-88. London: Macmillan, 1990, S. 356-371

Topic:: Stochastic processes and size distribution

JEL Classification:: D31 [Personal Income, Wealth, and Their Distributions]

Shelfmark:: S/M.2.1

Access:: Free access

22 salary. The salary thus decreases geometrically as we go from top to bottom. In terms of algebra: n: span of control b: manager's salary in proportion to that of his direct subordinates L: level of the hierarchy (counting the base as unity) N CL): number of managers at level L 'K' L-! /-L C(L): Salary at level L No: number of managers at the base level (2 J - A Salary at the base ^ N - - 4^ f** C '■ ^ A ) '{r N - A * C ■ * The salaries under the assumptions given conform to Pareto's distribution. Simon bases his model on empirical facts (Roberts' regression of top manager's salary on the size of firm, regression coefficient 0,37, which would correspond to the value of and Davis' Pareto distribution of managers' salaries in General Motors, Pareto coefficient 3). The above demonstration is purely deterministic, but if we regard the span of control as the reciprocal of a probability

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