Labor productivity, internal pay disparity, and organizational resilience

Yubing Zhao, Zhe Yuan and Junting Jia

Finance Research Letters, 2025, vol. 78, issue C

Abstract: Organizational resilience is essential for firms navigating volatile business environments. This study examines the impact of labor productivity on resilience, emphasizing the moderating role of internal pay disparity. Using a panel dataset of Chinese listed firms (2010–2022), the results show that labor productivity enhances resilience, but excessive pay disparity weakens this effect by undermining employee morale. Heterogeneity analysis reveals that firm ownership, life cycle stage, and industry classification influence this relationship. These findings emphasize the need for balanced human capital management strategies to enhance resilience, providing valuable insights for managers and policymakers to optimize workforce efficiency and pay structures.

Keywords: Organizational resilience; Labor productivity; Internal pay disparity; Human capital management; Firm performance (search for similar items in EconPapers)
JEL-codes: J24 J31 L25 M12 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004477

DOI: 10.1016/j.frl.2025.107184

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