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Can digital inclusive finance narrow the internal and external wage gaps in enterprises?

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  • Jiang, Ruichen
  • Wu, Qingtian

Abstract

This study employs empirical methods to explore how digital inclusive finance influences both internal and external wage gaps within enterprises, along with the mechanisms driving these effects. The results indicate that digital inclusive finance plays a significant role in narrowing wage disparities both within firms and in comparison to external benchmarks. It achieves this primarily by facilitating the accumulation of human capital among employees and management, which contributes to reducing income inequality. Moreover, the impact of digital inclusive finance is especially evident in government-controlled enterprises and firms with lower reliance on technology, while its effect is minimal in privately-owned businesses and technology-intensive companies. These findings offer new insights into the role of digital inclusive finance in promoting wage equity and provide valuable guidance for policymakers in designing financial strategies aimed at optimizing corporate compensation systems and enhancing societal income equality.

Suggested Citation

  • Jiang, Ruichen & Wu, Qingtian, 2025. "Can digital inclusive finance narrow the internal and external wage gaps in enterprises?," International Review of Financial Analysis, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:finana:v:102:y:2025:i:c:s1057521925002273
    DOI: 10.1016/j.irfa.2025.104140
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