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Privatization and enterprise wage structures during transition: Evidence from rural industry in china

Author

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  • Samuel P.S. Ho
  • Xiao–Yuan Dong
  • Paul Bowles
  • Fiona MacPhail

Abstract

Wage structures in transition economies usually diverge significantly from their centrally–planned predecessors. Using a matched sample of employees and enterprises, we examine the effects of privatization on wage structures in rural industry in two provinces of China. We find that privatization was associated with increased wage and earnings inequality. We report increased returns to education, increased returns to experience for mid–age workers, and increases in gender wage discrimination. We find these aspects of wage structures are similar in different types of private ownership emerging from the reform process. JEL classification: P31, P23, P26 and J31.

Suggested Citation

  • Samuel P.S. Ho & Xiao–Yuan Dong & Paul Bowles & Fiona MacPhail, 2002. "Privatization and enterprise wage structures during transition: Evidence from rural industry in china," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 10(3), pages 659-688, November.
    • Handle: RePEc:bla:etrans:v:10:y:2002:i:3:p:659-688
    DOI: 10.1111/1468-0351.t01-1-00129
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    Citations

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    Cited by:

    1. Figueiredo, Adelaide & Figueiredo, Fernanda & Monteiro, Natália P. & Straume, Odd Rune, 2012. "Restructuring in privatised firms: A Statis approach," Structural Change and Economic Dynamics, Elsevier, vol. 23(1), pages 108-116.
    2. 岩﨑, 一郎 & Iwasaki, Ichiro & 馬, 欣欣 & Ma, Xin Xin, 2019. "現代中国における男女賃金格差: メタ分析による接近," Discussion Paper Series 689, Institute of Economic Research, Hitotsubashi University.
    3. Lea, Stephen E.G. & Webley, Paul, 2005. "In search of the economic self," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(5), pages 585-604, October.
    4. Natalia Pimenta Monteiro, 2010. "Using propensity matching estimators to evaluate the impact of privatization on wages," Applied Economics, Taylor & Francis Journals, vol. 42(10), pages 1293-1313.
    5. Sylvie Dmurger & Martin Fournier & Li Shi & Wei Zhong, 2006. "Economic Liberalization with Rising Segmentation in China's Urban Labor Market," Asian Economic Papers, MIT Press, vol. 5(3), pages 58-101, Fall.
    6. Zhang, Linxiu & Huang, Jikun & Rozelle, Scott, 2002. "Employment, emerging labor markets, and the role of education in rural China," China Economic Review, Elsevier, vol. 13(2-3), pages 313-328.
    7. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender Wage Gap in China: A Large Meta-Analysis," CEI Research Paper Series 2020-5, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    8. Chengfang Liu & Ye Li & Shaoping Li & Renfu Luo & Linxiu Zhang & Scott Rozelle & Spencer Hagist & Jack Hou, 2020. "The returns to education in rural China: Some new estimates," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(1), pages 189-208, January.
    9. Iwasaki, Ichiro & Ma, Xinxin, 2020. "Gender wage gap in China: a large meta-analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54, pages 1-17.
    10. Yi CHEN & Sylvie DEMURGER & Martin FOURNIER, 2004. "Différentiels salariaux, segmentation et discrimination à l’égard des femmes sur le marché du travail chinois," Working Papers 200426, CERDI.
    11. Sylvie DÉMURGER & Martin FOURNIER & Yi CHEN, 2007. "The Evolution Of Gender Earnings Gaps And Discrimination In Urban China, 1988–95," The Developing Economies, Institute of Developing Economies, vol. 45(1), pages 97-121, March.
    12. Liu, C., 2018. "Reconciling Returns to Education in Off-Farm Wage Employment among Women in Rural China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276941, International Association of Agricultural Economists.
    13. Monteiro, Natalia Pimenta, 2003. "The Impact of Privatisation on Wages: Evidence from the Portugese Banking Industry," Royal Economic Society Annual Conference 2003 156, Royal Economic Society.
    14. Yi Chen & Sylvie Démurger & Martin Fournier, 2006. "The Evolution of Gender Eamings Gaps and Discrimination in Urban China : 1988-1995," Post-Print hal-00081928, HAL.
    15. Linxiu Zhang & Jikun Huang & Scott Rozelle, 2002. "Emploi, nouveaux marchés du travail, et rôle de l'éducation dans la Chine rurale," Revue d’économie du développement, De Boeck Université, vol. 10(3), pages 191-212.
    16. M Niaz Asadullah & Saizi Xiao, 2019. "Labor Market Returns to Education and English Language Skills in the People's Republic of China: An Update," Asian Development Review, MIT Press, vol. 36(1), pages 80-111, March.
    17. Le, Hoang Cuong & Cabalu, Helen & Salim, Ruhul, 2014. "Winners and losers in Vietnam equitisation programs," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 172-184.
    18. Haiqing Zhang & Linxiu Zhang & Renfu Luo & Qiang Li, 2008. "Does Education Still Pay Off in Rural China: Revisit the Impact of Education on Off‐farm Employment and Wages," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(2), pages 50-65, March.
    19. Adelaide Maria Figueiredo & Fernanda Otília Figueiredo & Natália Pimenta Monteiro, 2008. "Labor adjustments in privatized firms: a Statis approach," FEP Working Papers 306, Universidade do Porto, Faculdade de Economia do Porto.
    20. Alan De Brauw & Scott Rozelle, 2008. "Reconciling the Returns to Education in Off‐Farm Wage Employment in Rural China," Review of Development Economics, Wiley Blackwell, vol. 12(1), pages 57-71, February.
    21. Kwon, Ohyun & Fleisher, Belton M. & Deng, Quheng, 2011. "Evolution of the Industrial Wage Structure in China Since 1980," IZA Discussion Papers 5880, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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