Global Careers and Compensation: From Initial Penalties to a Superglobal Premium

Abstract

This paper examines the relationship between international mobility and financial compensation for knowledge workers pursuing business careers. While some theoretical arguments suggest that international mobility may lead to higher pay, others suggest that it may lead to performance problems and lack of recognition, which could reduce financial rewards. Empirical research on the topic is limited, with cross-sectional data providing little insight into the relationship between international mobility and compensation over time. Our study overcomes this challenge by using a panel dataset on the career histories of 1,322 MBA graduates. The results reveal a curvilinear relationship between international mobility and compensation over time. Making one or two international moves can have substantial negative effects on pay. However, further moves are associated with pay growth, and there is some evidence that those who move countries multiple times (“superglobals”) obtain substantially higher pay. We discuss the implications of our findings for research on international mobility and business careers.