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Wage inequality negatively impacts customer satisfaction and does not improve long-term firm performance


Researchers from University of Mannheim published a new paper in the
Journal of Marketing that examines the effect of wage inequality on customer satisfaction and firm performance.
The study, forthcoming in the
Journal of Marketing, is titled Wage Inequality: Its Impact on Customer Satisfaction and Firm Performance and is authored by Boas Bamberger, Christian Homburg, and Dominik M. Wielgos.
Irrespective of wage cuts and employee layoffs, the wages of top managers rose to record levels during the pandemic and wage inequality continues to grow worldwide. However, according to a 2015 OECD report, wage inequality is harmful to long-term economic growth and undermines societal cohesion. This situation raises the question: Do firms have an incentive to raise wage inequality? ....

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