Abstract:
Although executives and workers all are the enterprise value creators, most research has focused
on the study of executive compensation, and the wages of employees are less. Especially, there is
little literature to study the salary problem of employees in product market competition envi ronment. Using a sample of China’s listed firms from 2002 to 2014, we examine how product mar ket competition influences firm worker’s pay. We find that market competition will strengthen
employee wage, which results from market competition augment firm’s labor demand. At the
same time we also find that the higher the competitive position of enterprises in the industry, the
higher the wages. The evidence has an important implication for research on product market
competition and corporate behavior and provides some useful suggestions for policy makers.
