How Firms Shape Income Inequality: Stakeholder Power, Executive Decision Making, and the Structuring of Employment Relationships

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Academy of Management ReviewVol. 41, No. 4 DialogueHow Firms Shape Income Inequality: Stakeholder Power, Executive Decision Making, and the Structuring of Employment RelationshipsAsghar Zardkoohi and Leonard BiermanAsghar ZardkoohiTexas A&M University and Leonard BiermanTexas A&M UniversityPublished Online:12 Jul 2016https://doi.org/10.5465/amr.2015.0197AboutSectionsView articleView Full TextPDF/EPUB ToolsDownload CitationsAdd to favoritesTrack Citations ShareShare onFacebookTwitterLinkedInRedditEmail View articleREFERENCESAkerlof G., Yellen J. 1986. Efficiency wage models of the labor market. Cambridge: Cambridge University Press. Google ScholarBrickley J. A., Smith C. W., Zimmerman J. 2016. Managerial economics and organizational architecture (6th ed.). New York: McGraw-Hill Irwin. Google ScholarBrynjolfsson E., McAfee A. 2012. Race against the machine: How the digital revolution is accelerating innovation, driving productivity, and irreversibly transforming employment and the economy. Lexington, MA: Digital Frontier Press. Google ScholarCoase R. 1937. The nature of the firm. Economica, 4: 386–405. Google ScholarCobb J. A. 2016. How firms shape income inequality: Stakeholder power, executive decision making, and the structuring of employment relationships. Academy of Management Review, 41: 324–348. Google ScholarCoile C. C., Levine P. B. 2009. Will the current economic crisis lead to more retirements? VOX, CEPR’s Policy Portal, October 31: http://www.voxeu.org/article/crisis-will-force-workers-retire. Google ScholarDorfman J. 2015. The Fed’s low interest rates are increasing inequality. Forbes, May 12: http://www.forbes.com/sites/jeffreydorfman/2015/05/12/the-feds-low-interest-rates-are-increasing-inequality/. Google ScholarDyer J. H. 1996. Does governance matter? Keiretsu alliances and asset specificity as sources of Japanese competitive advantage. Organization Science, 7: 649–666. Google ScholarFreeman R. 2007. The great doubling: The challenge of the new global labor market. In Edwards J.Crain M.Kalleberg A. L. (Eds.), Ending poverty in America: How to restore the American Dream: 55–65. New York: New Press. Google ScholarGeyskens I., Steenkamp J. E. M., Kumar N. 2006. Make, buy, or ally: A transaction cost theory meta-analysis. Academy of Management Journal, 49: 519–543.Link , Google ScholarGreenspan A. 1998. Income inequality: Issues and policy options. The Federal Reserve Board, August 28: http://www.federalreserve.gov/boarddocs/speeches/1998/19980828.htm. Google ScholarHeathcote J., Violante G., Perri F. 2010. Inequality in times of crisis: Lessons from the past and a first look at the current recession. VOX, CEPR’s Policy Portal, February 2: http://www.voxeu.org/article/economic-inequality-during-recessions. Google ScholarJosefy M., Kuban S., Ireland R. D., Hitt M. A. 2015. All things great and small: Organizational size, boundaries of the firm, and a changing environment. Academy of Management Annals, 9: 715–802.Link , Google ScholarKahneman D. 2011. Thinking, fast and slow. New York: Farrar, Straus & Giroux. Google ScholarKahneman D., Tversky A. 1979. Prospect theory: An analysis of decision under risk. Econometrica, 47: 263–292. Google ScholarLazear E., Gibbs M. 2009. Personnel economics in practice. Hoboken, NJ: Wiley. Google ScholarLazear E., Rosen S. 1981. Rank-order tournaments as optimum labor contracts. Journal of Political Economy, 89: 841–864. Google ScholarMasten S. 1996. Case studies in contracting and organization. New York: Oxford University Press. Google ScholarMilgrom P., Roberts J. 1992. Economics, organization & management. Englewood Cliffs, NJ: Prentice Hall. Google ScholarMueller H. M., Ouimet P. P., Simintzi E. 2015. Wage inequality and firm growth. Luxembourg Income Study (LIS) Working Paper Series, No. 632. Google ScholarStiglitz J. E. 2013. The price of inequality: How today’s divided society endangers our future. New York: Norton. Google ScholarStiglitz J. E. 2015. The great divide: Unequal societies and what we can do about them. New York: Norton. Google ScholarUrban-Brookings Tax Policy Center. 2008. The Bush tax cuts: Beneficiaries. I-12-1. Google ScholarWilliamson O. 1985. The economic institutions of capitalism. New York: Macmillan. Google ScholarFiguresReferencesRelatedDetails Vol. 41, No. 4 Permissions Metrics in the past 12 months History Published online 12 July 2016 Published in print 1 October 2016 Information© Academy of Management ReviewWe would like to acknowledge helpful comments by Professor Duane Ireland and Matthew Josefy, a doctoral student.Download PDF