Minimum wage and internal income disparity within enterprises

The internal income gap within enterprises refers to the differences in compensation among employees within the same company. This paper takes non-financial listed companies in China as the research subject and empirically tests the impact of the regional minimum wage standards on the internal income disparity within enterprises. The study results indicate that higher regional minimum wage standards are conducive to narrowing the internal income disparities within enterprises. Heterogeneity analysis shows that the restraining effect of minimum wage standards on internal income disparity is more pronounced in enterprises located in regions with lower levels of marketization and in small-scale enterprises.