Compensation 11th Edition by George Milkovich,Jerry Newman,Barry Gerhart

Exercise 5

The differential between the salary of top executives and the lowest paid workers in the same country is quite small in Japan, at least in comparison to the United States. The same is true in unions (president of union versus union workers). Explain why the differential might be small in Japan and in U.S. unions but much larger in private U.S. corporations.