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Labor productivity, internal pay disparity, and organizational resilience

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  • Zhao, Yubing
  • Yuan, Zhe
  • Jia, Junting

Abstract

Organizational resilience is essential for firms navigating volatile business environments. This study examines the impact of labor productivity on resilience, emphasizing the moderating role of internal pay disparity. Using a panel dataset of Chinese listed firms (2010–2022), the results show that labor productivity enhances resilience, but excessive pay disparity weakens this effect by undermining employee morale. Heterogeneity analysis reveals that firm ownership, life cycle stage, and industry classification influence this relationship. These findings emphasize the need for balanced human capital management strategies to enhance resilience, providing valuable insights for managers and policymakers to optimize workforce efficiency and pay structures.

Suggested Citation

  • Zhao, Yubing & Yuan, Zhe & Jia, Junting, 2025. "Labor productivity, internal pay disparity, and organizational resilience," Finance Research Letters, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004477
    DOI: 10.1016/j.frl.2025.107184
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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