The internal income distribution within firms is a core link in the larger pattern of income distribution among the government,enter-prises,and residents.Whether the population ag-glomeration in urban clusters across administrative boundaries affects the internal salary disparities within firms in the region remains to be further ex-plored.This paper empirically analyzes the impact of population agglomeration in urban clusters on internal pay gaps within firms,using data from Chinese A-share listed companies from 2009 to 2019.The study indicates that population agglomer-ation within urban clusters has a'double-edged sword'effect on the internal pay gaps of firms;it narrows the general salary disparities but widens the excessive compensation gaps.To ensure the positive effects of population agglomeration on in-come distribution,it is essential to curb excessive executive compensation.This paper,grounded in the framework of new economic geography,considers the impact of knowledge exchange and technological spillover on internal wage disparities.The findings provide empirical evidence and policy references for deepening the reform of the income distribution system and advancing shared prosperity.
Urban agglomeration population convergenceWage disparityGeneral wage disparityExcess wage disparityKnowledge exchange