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Examines the extent of earnings dispersion among US organizations, drawing on data from the 1991 National Organizations Study. Earnings inequality is divided into within- & between-occupation dispersion, suggesting that an overall measure of earnings inequality would have obscured the complexities of the data along these two dimensions. It is found that larger & more differentiated organizations are characterized by greater earnings inequality, but only within managerial occupations. Internal labor markets are associated with less inequality, while gender heterogeneity is positively correlated with greater inequality both between & within occupations. Greater inequality is perceived by managers in larger organizations than those in smaller workplaces. Unions reduce inequality both among managerial & core occupations. More comprehensive data may be obtained by a study that examines samples of individuals in each organization to separate the effects of organization- & individual-level variables. 5 Tables, 1 Figure. D. M. Smith

Investigates the relation of organizational characteristics to levels of employees' earnings, drawing on data from the 1991 National Organizations Study. It is generally found that the larger the organization, the higher the level of earnings across establishments. Further, earnings are higher in organizations that are more differentiated & formalized. The presence of internal labor markets is most strongly associated with higher earnings. In terms of gender differences, the long-standing conclusion that women earn appreciably less than men is supported. Separation of organizational & individual effects on earnings proved impossible, because the research design employed data from only one respondent in most organizations. It is suggested that a more comprehensive explanation of the relation between organization size & earnings level will have to take into account the possibility that size affects the dispersion of earnings as well as their average levels. 2 Tables, 1 Appendix. D. M. Smith

This article examines the organizational correlates of earnings inequality using data from the National Organizations Study. The authors conceptualize earnings inequality within organizations as comprising two distinct components: within- and between-occupations earnings dispersion. The authors test three sets of hypotheses about the determinants of organizational earnings inequality. These are related to (a) an organization's context, (b) the organization's structure, and (c) the composition of the organization's labor force. The authors find that larger and more differentiated organizations are associated with greater inequality, but only within managerial occupations. Organizations with firm internal labor markets have less inequality between occupations. And, gender heterogeneity enhances inequality between as well as within occupations.