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Wage Reforms in China During the 1990s

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  • Linda Y. Yueh

Abstract

In urban areas of China, economic reforms were intensely implemented after 1984. We focus on two primary aspects of the reforms in the 1990s, those pertaining to the labor market and to wages. Based on original interviews and two unique household data sets, we investigate the effects of the reforms. Our first finding is that the components of annual income have changed, reflecting fewer subsidies and more diverse sources of income (such as self‐employment), over the period from 1995 to 1999. By 1999, the wage structure reflects less seniority‐based pay, allows for more discretion in rewarding non‐productive characteristics (gender and Communist Party membership, for example) and also permits more productivity‐related pay (as evidenced by increased returns to human capital).

Suggested Citation

  • Linda Y. Yueh, 2004. "Wage Reforms in China During the 1990s," Asian Economic Journal, East Asian Economic Association, vol. 18(2), pages 149-164, June.
    • Handle: RePEc:bla:asiaec:v:18:y:2004:i:2:p:149-164
    DOI: 10.1111/j.1467-8381.2004.00187.x
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    References listed on IDEAS

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    1. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-1143, Nov.-Dec..
    2. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    3. Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
    4. Knight, John B & Song, Lina, 1991. "The Determinants of Urban Income Inequality in China," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 53(2), pages 123-154, May.
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