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

Minghuan Li, Anxuan Jiang and Jianteng Ma

Pacific-Basin Finance Journal, 2023, vol. 81, issue C

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.

Keywords: Digital transformation; Income inequality; R&d; Innovation (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:81:y:2023:i:c:s0927538x23002044

DOI: 10.1016/j.pacfin.2023.102133

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