Voluntary environmental programs and corporate labor income share: Evidence from ISO14001 environmental standard...

Area of Science:

• Environmental Economics
• Corporate Social Responsibility
• Labor Economics

Background:

• Voluntary environmental regulation is crucial for pollution control and green economy development.
• Factor income distribution is significantly influenced by environmental policies.
• Increasing labor income share is vital for mitigating capital-labor conflicts.

Purpose of the Study:

• To investigate the causal effect of voluntary environmental programs on corporate labor income share.
• To identify the mechanisms through which these programs impact income distribution.
• To explore the heterogeneity of this effect across different enterprise types and regions.

Main Methods:

• Utilizing ISO14001 environmental standard certification as a quasi-natural experiment.
• Employing regression analysis to establish the relationship between environmental programs and labor income share.
• Conducting mechanism and heterogeneity analyses to understand the nuances of the impact.

Main Results:

• Voluntary environmental programs demonstrably increase corporate labor income share.
• Key mechanisms include alleviating financial constraints, optimizing human capital, and reducing market power.
• The positive effect is stronger in non-state-owned, highly polluting, and market-oriented enterprises.

Conclusions:

• Voluntary environmental programs are effective tools for enhancing labor income share.
• These programs contribute to common prosperity by improving employee compensation and reducing internal income disparities.
• The findings offer theoretical insights and practical solutions for green economy development and equitable income distribution.