HAPPIER UPPER CLASSES? – DO THE INTRA-FIRM COMPENSATION GAP AND GENDER WAGE DISCRIMINATION EXIST: EVIDENCE FROM A CHINESE COMPANY UNDER A TWO-TIER FRONTIER MODEL1

Ziwen Zhu and Fei Qin
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Ziwen Zhu: Huazhong University of Science and Technology, School of Economics, China
Fei Qin: Huazhong University of Science and Technology, School of Economics, China

Review of Socio - Economic Perspectives, 2018, vol. 3, issue 1, 29-45

Abstract: We examine the intra-firm compensation gap and gender wage discrimination in a listed company in China. We argue that the difference in bargaining ability of different level of employee can bring intra-firm compensation gap and we know that gender wage discrimination does exist at the bottom levels of employee. The bottom levels of employee have less bargaining ability than the firm, then get negative net surplus on wage that shows the existence of wage discrimination. While the upper levels of employee have stronger bargaining ability than the firm and will get positive net surplus on wage, which proves that the intra-firm compensation do really exist and the firm will pay more for upper levels. For bottom levels, female has relatively less bargaining ability than male and gets less wage, showing the existence of gender wage discrimination. Upper levels have almost the same bargaining ability as the firm and can get small amount of positive net surplus and there is no gender wage discrimination.

Keywords: Two-tier frontier; Bargaining ability; Gender wage discrimination; Intra-firm compensation (search for similar items in EconPapers)
JEL-codes: D31 J24 J31 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:aly:journl:201819

DOI: 10.19275/RSEP042

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