LEAVING FOOTPRINT IN THE SOCIETY: THE ROLE OF ORGANIZATIONAL PAY INEQUALITY

Received:October 15, 2017  Revised:October 15, 2017

Key Words:  Gini index; Organizational pay inequality; Subjective well-being

Author NameAffiliation
Kaifeng Jiang* The Ohio State University 
Yingya Jia Fudan University 
Anne S Tsui University of Notre Dame 

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Abstract:
      In this study, the authors examine the influence of organizational pay inequality on society level income inequality and citizens’ subjective well-being at the nation level of analysis. By using a combined data set of 26 OECD countries over 10 years, the authors found that organizational pay inequality had a significant lagged effect on the nation’s Gini index. The authors also found that organizational pay inequality had a stronger relationship with citizens’ subjective well-being than Gini index and that the negative relationship between organizational pay inequality and subjective well-being was moderated by both corporate policies and government policies.

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