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Intra-firm pay gap and labor demand

Author

Listed:
  • Li, Biao
  • Luo, Zhangwei
  • Wei, Yijia
  • Qiu, Yong
  • Wu, Siyi

Abstract

Based on data from Chinese A-share listed firms from 2006 to 2020, this paper empirically analyzes the impact of the intra-firm pay gap on firms' labor demand. We find that the widening intra-firm pay gap changes the structure of firms' labor demand, increasing the demand for low-skilled labor and decreasing the demand for high-skilled and middle-skilled labor. The effect of the widening intra-firm pay gap on the demand for low-skilled labor is more pronounced in non-state-owned firms, non-manufacturing firms, and firms with high governance level.

Suggested Citation

  • Li, Biao & Luo, Zhangwei & Wei, Yijia & Qiu, Yong & Wu, Siyi, 2023. "Intra-firm pay gap and labor demand," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s154461232301005x
    DOI: 10.1016/j.frl.2023.104633
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    References listed on IDEAS

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