Trade exports and excessive wage inequality: a perspective based on the structure of factors

This study utilizes publicly traded corporations in China from 2010 to 2023 to analyse how trade exports influence excessive wage inequality within firms, focusing on the structure of factors involved. The findings indicate that when firms expand their exports, there is a shift in the supply and demand dynamics of the factor market, leading to changes in factor returns. In essence, the export sector plays a crucial role in reducing excessive wage inequality within firms by strategically adjusting the structure of factors. Additionally, this study shows that the impact of export growth is especially significant in non-state-owned enterprises and in areas with strong openness. This study delves into how product market expansion influences demand and pricing in the factor market from the perspective of individual enterprises. This study advances the theory of factor allocation in international trade and offers important policy insights for sustaining free trade practices.