Earnings Inequality within a Firm: Evidence from a Korean Insurance Company
- Earnings Inequality within a Firm: Evidence from a Korean Insurance Company
- Moon, Seongwuk
- Product Market Strategy; Contractual Relationship; Earnings Inequality
- Issue Date
- Series/Report no.
- KDI Working Paper Series;09-20
- This paper examines the determinants of the earnings inequality within a rm. Speci cally, we
will investigate how a rm s product market strategy and the contractual relationship generate the
skewed earnings distribution. By using data from an insurance company, we will show how independent
relationship can be a source of skewed distribution of earnings during the transition of a rm s strategy
in competitive market. In the preliminary analysis, being independent with the sales of trandition
insurance products seems to be associated with either the highest or the lowest percentile.
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