Perhaps this provides part of the explanation of random promotion policies (equivalent to random wages) used by some universities.
Is this true? Do some US universities really promote faculty staff at random?
I came across this quote in an old (1982) paper by the famous economist Joseph E Stiglitz with the intriguing title
which can be downloaded for free from http://ideas.repec.org/p/nbr/nberwo/0694.html.
It is not, you’ll be pleased to hear, advocacy for the insane policy of random taxation — unless you consider the old Roman punishment of Decimation to be a Good Idea!
Rather it is a thought experiment, with some interesting implications.