Testable theories

Jan Tinbergen - the first person to be awarded the Nobel Prize in Economics - became known for his 'Tinbergen Norm'. This states that if the difference between the lowest and highest income in a company exceeds a rate of 1:5, that will not help the company and may indeed be counterproductive.

In 2000, the ratio of average-CEO-to-average-worker was 525 to 1.

Disclaimer: I could not find an original source for the Tinbergen Norm. I'll have another go at it and report back soon.

by datacharmer | Tuesday, March 11, 2008
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