Abstract: This study deals with wage inequality in organization
and shows the relationship between ICT and wage in organization.
To do so, we incorporate ICT’s factors in organization into our
model. ICT’s factors are efficiencies of Enterprise Resource
Planning (ERP), Computer Assisted Design/Computer Assisted
Manufacturing (CAD/CAM), and NETWORK. The improvement of
ICT’s factors decrease the learning cost to solve problem pertaining
to the hierarchy in organization. The improvement of NETWORK
increases the wage inequality within workers and decreases within
managers and entrepreneurs. The improvements of CAD/CAM and
ERP increases the wage inequality within all agent, and partially
increase it between the agents in hierarchy.
Abstract: This paper uses a primary data from 670 Chinese
manufacturing firms, together with the newly introduced regressionbased
inequality decomposition method, to study the effect of
openness on wage inequality. We find that openness leads to a
positive industry wage premium, but its contribution to firm-level
wage inequality is relatively small, only 4.69%. The major
contributor to wage inequality is human capital, which could explain
14.3% of wage inequality across sample firms.