Does Political Promotions Impact Pay Gap?
Read
DownLoad |
| Title | Does Political Promotions Impact Pay Gap?
|
| Author | Kong Gaowen,Li Wenjing,Hu Yuming and Kong Dongmin |
| Organization | Jinan University; Zhongnan University of Economics and Law) |
| Email | konggaowen@qq.com；tliwenjing@jnu.edu.cn；thuym@jnu.edu.cn；kong@znufe.edu.cn |
| Key Words | political promotion; pay gap; property rights; political connection; government intervention |
| Abstract | Using 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 Number | WP1098 |
| Time | 2016-08-16 |
|