The Effects Of Salary Gap Between Managers And Employees

The 19th National Congress of the Communist Party of China stated that our country’s economic development has changed from a stage of high-speed growth to a stage of high-quality development.However,the income gap between corporate managers and employees has been increasing year by year,which runs counter to the concept of co-construction and sharing of income distribution.Based on the theory of the salary gap,this thesis collects the relevant data of China’s A-share listed manufacturing companies from 1998 to 2018 and the corresponding year’s macroeconomic indicator data.Firstly,this thesis makes a descriptive statistic on the current situation of the salary gap between managers and employees;secondly,it analyzes the root causes of the salary gap,Including external factors and internal factors.Finally,the thesis makes a theoretical and empirical study on the effect of the salary gap between managers and employees.At the same time,this thesis studies the fairness and efficiency of the salary gap and the impact of the salary gap on the income gap and output growth.Through empirical research,this thesis finds that on one hand,the salary gap between managers and employees has a negative impact on the fairness of corporate income distribution.On the other hand,the salary gap between managers and employees has significant effects on corporate performance,the income gap at both the micro and macro level and the economic value added of the enterprise and the industry.Based on the above conclusions,this thesis also puts forward some relevant policy suggestions,that is,appropriately increasing the salary gap between managers and employees will help to improve the objective fairness of enterprise income distribution and improve the efficiency of enterprise operation.At the same time,enterprises should also be sensitive to the national policies and measures,and make effective use of the positive role of the salary gap.