Acknowledging the importance of organizations in the process of stratification and attainment, and using a body of diverse theories in stratification, complex organization, and microeconomics fields, this paper develops a contextual earnings model where a host of bureaucratic dimensions and technological structures of organizations along with a standard set of human capital variables serve as explanatory measures of earnings. I show that organizational variables employed in the research not only substantially add to the explanatory power of a model containing human capital variables, but also account for most of the variations in earnings that are attributed to establishment differences. Among other findings are: (1) size, formalization, and employment centralization positively affect earnings; (2) continuous process technology and custom / small batch technology have negative impacts on earnings; and (3) organizational variables are better predictors of female than male earnings.
ASJC Scopus subject areas
- Social Sciences(all)