ABSTRACT

This chapter reviews the approaches that do recognize the possibility of organization-to-organization variability in between-job wage inequality, and offers some alternative models that approach the subject from a slightly different perspective. In the field of economic sociology, and especially in the study of labor markets, social problems, social theory, and social policy frequently meet head-on. In the market contains sex bias, employing organizations are largely price takers: they internalize gender-biased market wage rates. Organizational size matters because smaller organizational units are less ossified and more responsive to their external surroundings. The administered efficiency model is characteristic of those branches of economics that recognize that organizational influences might derail pure market determination of wage rates. The case studies strikingly demonstrate how large organizations mediate between the price of labor in the labor market and wage schedules within organizations.