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Does Political Promotions Impact Pay Gap?
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TitleDoes Political Promotions Impact Pay Gap?  
AuthorKong Gaowen,Li Wenjing,Hu Yuming and Kong Dongmin  
OrganizationJinan University; Zhongnan University of Economics and Law);;; 
Key Wordspolitical promotion; pay gap; property rights; political connection; government intervention 
AbstractUsing the dataset of local governmental politician's promotion, we investigate whether political promotion distorts firms' salary equity. We find that pay gap is significantly decreased when local party secretary meets political promotion, and this distort is exists largely in state-owned enterprises, political connected enterprises and areas where local government strongly interposes local economics. Our results are still significantly after using earthquake as an instrument variable to control the potential endogeneity, and robust to alternative measures. Moreover, our results also successfully pass a placebo test. We provide a more deeply understanding to political promotion and the mechanism for that how political regime influences enterprise internal system. 
Serial NumberWP1098 
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