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The Effect of Local Internet Development on Employees’ Salary: Evidence from China

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  • Jing Liu

Abstract

Using empirical data from China, this study examines the impact of local internet development on non-executive employees’ salaries. Research findings show that internet development can increase employees’ salary and pay-performance sensitivity. This effect can be more significant in non-state-owned enterprises (Non-SOEs for short), firms faced with fierce competition, and firms paid little attention to employee protection. Mechanism analysis finds that the positive impact of internet development on increasing total factor productivity and reducing information asymmetry can partly interpret the effect. From the perspective of employees’ salaries, this study sheds light on the impact of technological progress on micro-production relations.

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  • Jing Liu, 2024. "The Effect of Local Internet Development on Employees’ Salary: Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(9), pages 1986-1999, July.
    • Handle: RePEc:mes:emfitr:v:60:y:2024:i:9:p:1986-1999
    DOI: 10.1080/1540496X.2023.2298253
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