{"title":"Artificial intelligence and intra-firm pay dispersion: Evidence from China","authors":"Tingyu Liu , Peng Huang , Qiaoru Wang","doi":"10.1016/j.chieco.2025.102501","DOIUrl":null,"url":null,"abstract":"<div><div>This paper examines the impact of AI on intra-firm pay dispersion using a patent database and a micro-database of Chinese A-share listed companies from 2003 to 2021. The results indicate AI adoption reduce intra-firm pay dispersion, primarily through its suppression effect on executive compensation. This effect is particularly pronounced in firms characterized by capital-intensive operations, non-state ownership, and coastal locations. While organizational scale expansion partially offsets AI's role in narrowing pay dispersion, task-based decomposition reveals AI exacerbates wage polarization by disproportionately reduces wage of labors specializing in routine tasks. Additionally, industry-level analysis confirms that AI amplifies wage inequality both within and across sectors.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"93 ","pages":"Article 102501"},"PeriodicalIF":5.2000,"publicationDate":"2025-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"中国经济评论","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S1043951X25001592","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This paper examines the impact of AI on intra-firm pay dispersion using a patent database and a micro-database of Chinese A-share listed companies from 2003 to 2021. The results indicate AI adoption reduce intra-firm pay dispersion, primarily through its suppression effect on executive compensation. This effect is particularly pronounced in firms characterized by capital-intensive operations, non-state ownership, and coastal locations. While organizational scale expansion partially offsets AI's role in narrowing pay dispersion, task-based decomposition reveals AI exacerbates wage polarization by disproportionately reduces wage of labors specializing in routine tasks. Additionally, industry-level analysis confirms that AI amplifies wage inequality both within and across sectors.
期刊介绍:
The China Economic Review publishes original works of scholarship which add to the knowledge of the economy of China and to economies as a discipline. We seek, in particular, papers dealing with policy, performance and institutional change. Empirical papers normally use a formal model, a data set, and standard statistical techniques. Submissions are subjected to double-blind peer review.