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[Excerpt] In this paper we are concerned with the salaries of three important municipal officials; city-managers, police chiefs, and fire chiefs. We present a model that relates the salaries of these officials to a set of explanatory variables, the most important being measures associated with job performance. Two of these measures of performance are developed in the study. Further, the influence of the city-manager form of government on the incentive structure facing police chiefs and fire chiefs, and the interdependence betwen the salaries of police chiefs and fire chiefs is investigated. The model is tested using cross-section data for 1967.


Suggested Citation
Goldstein, G. S. & Ehrenberg, R. G. (1976). Executive compensation in municipalities [Electronic version]. Southern Economic Journal 43(1), 937-947.

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© Southern Economic Association. Reprinted with permission. All rights reserved.