Management of Managers and Workers Reward of Organization with Learning

This paper studies the dispersion around the workers expected reward of before and after controlling the organizational hierarchical positions in cross section data samples. Data collected form 694 managers and workers of 69 industrial and business organizations, showd that this dispersion decreases with education and work experience before entering the current job and increases with job tenure. These finding contrasts with previous researches show a positive association between reward dispersion and education and work experience. This study explains the new finding through a model of learning that separates from reward dispersion between jobs and within organizational hierarchical positions jobs. The model takes advantage of the information revealed when workers are promoted to their current hierarchical positions and allows for more robust tests of learning theories. This study also contributes to the existing literature through a new two equation empirical model, one for the level of reward and another for conditional dispersion, in order to test the theoretical predictions. The paper is organized as follows: Summarize the empirical implications of learning models in studying the determinants of worker's reward when information is available about managers and worker's job positions. Description of the database and methodology and so present the results of the estimation of the empirical model. The discussion of the evidence supporting the basic theory and conclusion with a brief summary of the main findings.