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Effect of new subway openings on corporate employee compensation: Evidence from China

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  • Li, Zhaomin
  • Zhou, Minting
  • Xu, Hanwen
  • Jia, Chunchun

Abstract

This study examines the effect of new subway openings on employee compensation. Using data from China's A-share listed companies, we find that a new subway opening significantly improves employee compensation. We identify two primary reasons for this positive effect: increasing in total factor productivity and improving in labor market competition. Our study also indicates that new subway openings promote the economic advancement of the region.

Suggested Citation

  • Li, Zhaomin & Zhou, Minting & Xu, Hanwen & Jia, Chunchun, 2025. "Effect of new subway openings on corporate employee compensation: Evidence from China," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001175
    DOI: 10.1016/j.frl.2025.106852
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