Setting limits: Ethical thresholds to the CEO-worker pay gap

In the discussion about wage inequality, principles of fairness and need for incentives are juxtaposed as opposing motivations for wage inequality acceptance. While previous literature focused on ideal inequality, in two correlational and one preregistered experimental study (Ntotal = 664) we tested the hypothesis of a threshold of inequality acceptance. Participants were asked to indicate what a Chief Executive Officer should earn, ideally (i.e., ideal pay gap) and at maximum (i.e., highest acceptable pay gap), given the wage of a worker. Results showed that individuals generally indicated higher values for highest acceptable than for ideal pay gaps. Study 2 also provides evidence for a minimum degree of inequality that is deemed necessary. Additionally, across studies men preferred and tolerated greater wage inequality than women. In conclusion, these studies provide evidence for a threshold of inequality acceptance and pave the way for new research on the cognitive and motivational underpinnings of attitudes towards economic inequalities.

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Journal
PLoS ONE
Published
2024-11-21
DOI
https://doi.org/10.1371/journal.pone.0311593
Primary Topic
Ethics in Business and Education
Type
article
Field-Weighted Citation Impact
0.00

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article

Setting limits: Ethical thresholds to the CEO-worker pay gap

Michela Lenzi, Andrea Scatolon, Carmen Cervone, Anne Maass
PLoS ONE
Ethics in Business and Education
article

Setting limits: Ethical thresholds to the CEO-worker pay gap

Michela Lenzi, Andrea Scatolon, Carmen Cervone, Anne Maass
article en

Abstract

In the discussion about wage inequality, principles of fairness and need for incentives are juxtaposed as opposing motivations for wage inequality acceptance. While previous literature focused on ideal inequality, in two correlational and one preregistered experimental study (Ntotal = 664) we tested the hypothesis of a threshold of inequality acceptance. Participants were asked to indicate what a Chief Executive Officer should earn, ideally (i.e., ideal pay gap) and at maximum (i.e., highest acceptable pay gap), given the wage of a worker. Results showed that individuals generally indicated higher values for highest acceptable than for ideal pay gaps. Study 2 also provides evidence for a minimum degree of inequality that is deemed necessary. Additionally, across studies men preferred and tolerated greater wage inequality than women. In conclusion, these studies provide evidence for a threshold of inequality acceptance and pave the way for new research on the cognitive and motivational underpinnings of attitudes towards economic inequalities.

PLoS ONEVol. 19(11)
New York University Abu Dhabi (AE), University of Padua (IT)
Ministero dell’Istruzione, dell’Università e della Ricerca
Decent work and economic growth
Openalex Percentile: Top 75%
Ethics in Business and Education
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Setting limits: Ethical thresholds to the CEO-worker pay gap — Michela Lenzi, Andrea Scatolon, et al. · PLoS ONE (2024) | TGRS Research Map | TGRS