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Digital transformation and income inequality within enterprises – Evidence from listed companies in China

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  • Li, Minghuan
  • Jiang, Anxuan
  • Ma, Jianteng

Abstract

This study examines the influence of digital transformation on internal income inequality. The findings suggest that enterprise digital transformation has a discernible impact on reducing income inequality between managerial staff and ordinary employees. However, it also leads to an increase in income inequality between high-skilled and low-skilled employees. Mechanism tests reveal that enterprise digital transformation affects income inequality within firms by amplifying investments in research and development (R&D). Furthermore, during corporate digital transformation, a narrower compensation gap between the management and ordinary employees, as well as a wider compensation gap between high-skilled and low-skilled employees, significantly enhance corporate innovation performance.

Suggested Citation

  • Li, Minghuan & Jiang, Anxuan & Ma, Jianteng, 2023. "Digital transformation and income inequality within enterprises – Evidence from listed companies in China," Pacific-Basin Finance Journal, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:pacfin:v:81:y:2023:i:c:s0927538x23002044
    DOI: 10.1016/j.pacfin.2023.102133
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