Publication Type

Journal Article

Version

acceptedVersion

Publication Date

7-2019

Abstract

We review research on the organizational causes (how do organizations contribute?) and consequences (how are organizations affected?) of economic inequality. Our review of 151 conceptual and empirical articles indicates that organizational research on economic inequality encompasses a wide range of topics at multiple levels of analysis, but also that this broad-scope literature exhibits conceptual ambiguities and lacks overarching organizing frameworks. To address these two issues, we develop an organizational perspective on economic inequality and clarify it as uneven distribution in the endowment and/or access to resources in a society, which manifests in differential abilities and opportunities to engage in value creation. Following this, we integrate the reviewed research to highlight the bi-directional relationship between societal economic inequality and organizations, and eight mechanisms that drive this relationship. We conclude by identifying opportunities for future research on economic inequality in research on management and organizations.

Keywords

Income inequality, employee performance, wage inequality, pay dispersion, gender

Discipline

Organizational Behavior and Theory | Strategic Management Policy

Research Areas

Strategy and Organisation

Publication

Academy of Management Annals

Volume

14

Issue

1

First Page

60

Last Page

91

ISSN

1941-6520

Identifier

10.5465/annals.2018.0029

Publisher

Academy of Management

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.5465/annals.2018.0029

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