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The Impact of Regulation on CEO Labor Markets

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  • Darius Palia

Abstract

I examine empirically whether the executive labor market helps to slot managers with higher education quality into jobs where they can obtain greater returns from their human capital skills. Comparing a sample of regulated gas and electric firms with manufacturing firms, I find that utilities attract CEOs with a lower-quality education than do unregulated firms. Comparing a sample of airline firms pre- and postderegulation, airlines have CEOs with a higher-quality education postderegulation. These results suggest that the labor market slots CEOs with a lower quality of education into regulated business environments.

Suggested Citation

  • Darius Palia, 2000. "The Impact of Regulation on CEO Labor Markets," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 165-179, Spring.
  • Handle: RePEc:rje:randje:v:31:y:2000:i:spring:p:165-179
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