Study on Influence of Labor Compensation on Employee Structure

DOI

10.2991/978-94-6239-777-4_56How to use a DOI?

Keywords

Employee Compensation; Employee Structure; Heterogeneity; A-listed Companies

Abstract

INTRODUCTION

In the era of knowledge-driven economy and strategic human capital management, employee structure has emerged as a core determinant of corporate competitiveness and long-term sustainable growth. While existing literature has explored the determinants of employee structure from technological innovation, corporate governance, and institutional environment perspectives, the causal link and underlying mechanism between labor compensation and employee structure remain under-investigated.

OBJECTIVES

This study aims to fill this gap by theoretically analyzing and empirically testing how employee compensation shapes employee structure.

METHODS

Using a sample of 2,833 firm-year observations of Chinese A-share listed companies spanning 2008 to 2024 sourced from the CSMAR database, this paper employs a two-way fixed-effects model for baseline regression. The findings reveal that higher labor compensation significantly improves employee structure, with a one-unit increase in compensation leading to a 0.1327-unit improvement in employee structure. A battery of robustness checks, including sample restriction, industry fixed effects, and endogeneity corrections using 2SLS and system GMM estimators, confirm the reliability of the baseline results. Heterogeneity analysis further demonstrates that the positive effect is more pronounced in firms with lower return on equity (Roe) and higher financial leverage.

CONCLUSION

This study enriches the research on the economic consequences of compensation policies and the driving factors of employee structure, and provides practical implications for enterprises to treat compensation as a strategic investment rather than a mere cost, thereby optimizing human capital allocation and sustaining long-term development under performance and financial pressures.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Xiwen Fan
PY  - 2026
DA  - 2026/09/30
TI  - Study on Influence of Labor Compensation on Employee Structure
BT  - Proceedings of the 2026 8th International Conference on Economic Management and Cultural Industry (ICEMCI 2026)
PB  - Atlantis Press
SP  - 530
EP  - 539
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-777-4_56
DO  - 10.2991/978-94-6239-777-4_56
ID  - Fan2026
ER  -