“There are three theories I know about for why big corporations pay more.”
Note that all three theories, not only the second one, require that larger firms are more productive and make more money per employee.
“If working at a major corporation is a major life cost, and working in management a bigger one, and these come with higher pay, than a lot of income inequality in developed countries does not represent a gap in desired life outcomes, and it might be more unfair if that part of the gap was closed.”
If large corporations are so bad that people should be discouraged from working there, closing the gap by taxing higher incomes would still be good, as it discourages rent-seeking and rat races.
“There are three theories I know about for why big corporations pay more.”
Note that all three theories, not only the second one, require that larger firms are more productive and make more money per employee.
“If working at a major corporation is a major life cost, and working in management a bigger one, and these come with higher pay, than a lot of income inequality in developed countries does not represent a gap in desired life outcomes, and it might be more unfair if that part of the gap was closed.”
If large corporations are so bad that people should be discouraged from working there, closing the gap by taxing higher incomes would still be good, as it discourages rent-seeking and rat races.