Scholarlink

<p>Income inequality is a worldwide phenomenon that increasingly concerns scholars, policy-makers, business leaders, and ordinary citizens. Building on research emphasizing the role of firms in shaping societal outcomes, this study investigates how organizational pay structures—specifically the chief executive officer (CEO)-to-employee pay ratios—relate to societal-level income inequality and citizens’ subjective well-being. Using a 15-year panel dataset of 53 countries, we find that higher CEO-to-employee pay ratios are significantly associated with next-year increases in societal-level income inequality. Drawing on social justice theory, we also show that CEO-to-employee pay ratios are negatively related to citizens’ subjective well-being one&#xa0;year later, above and beyond the effects of societal-level income inequality and other national conditions. We further found that this negative association is more pronounced in countries with a stronger welfare state. Together, these findings advance research on inequality, well-being, and international business by showing how firm-level compensation structures shape broader societal outcomes. These findings also offer actionable implications for corporate leaders and policy-makers seeking to understand how corporate pay structure extends beyond organizations to affect societal economic inequality and citizens’ well-being.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

CEO-to-employee pay ratios, societal-level income inequality, and citizens’ subjective well-being

  • 期刊论文

  • 发表日期：

    2026年2月12日

查看全文
  • Kaifeng Jiang,
  • Yingya Jia,
  • Anne S. Tsui,
  • Jia Yu

摘要

Income inequality is a worldwide phenomenon that increasingly concerns scholars, policy-makers, business leaders, and ordinary citizens. Building on research emphasizing the role of firms in shaping societal outcomes, this study investigates how organizational pay structures—specifically the chief executive officer (CEO)-to-employee pay ratios—relate to societal-level income inequality and citizens’ subjective well-being. Using a 15-year panel dataset of 53 countries, we find that higher CEO-to-employee pay ratios are significantly associated with next-year increases in societal-level income inequality. Drawing on social justice theory, we also show that CEO-to-employee pay ratios are negatively related to citizens’ subjective well-being one year later, above and beyond the effects of societal-level income inequality and other national conditions. We further found that this negative association is more pronounced in countries with a stronger welfare state. Together, these findings advance research on inequality, well-being, and international business by showing how firm-level compensation structures shape broader societal outcomes. These findings also offer actionable implications for corporate leaders and policy-makers seeking to understand how corporate pay structure extends beyond organizations to affect societal economic inequality and citizens’ well-being.