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Earnings differentials between the public and private sectors in China: Exploring changes for urban local residents in the 2000s

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Author Info

  • Démurger, Sylvie
  • Li, Shi
  • Yang, Juan

Abstract

This paper analyzes the changes in public–private sector earnings differentials for local residents in urban China between 2002 and 2007. We find that earnings gaps across ownership sectors decreased during this period and that the convergence trend has been in favor of the private and semi-public sectors as opposed to the public sector. This trend is in sharp contrast to what occurred at the turn of the 21st century when employees in the government and state-owned enterprises were found to enjoy a privileged situation. Differences in endowments are found to play a growing role in explaining earnings differentials. However, although it is becoming less of an issue, segmentation across ownership remains important, especially for high-wage earners.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 23 (2012)
Issue (Month): 1 ()
Pages: 138-153

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Handle: RePEc:eee:chieco:v:23:y:2012:i:1:p:138-153

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Web page: http://www.elsevier.com/locate/chieco

Related research

Keywords: Labor market; Earnings differentials; Segmentation; Enterprise ownership; China;

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Cited by:
  1. C. Duvivier & S. Li & M.-F. Renard, 2013. "Are workers close to cities paid higher nonagricultural wages in rural China?," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4308-4322, October.
  2. Chi, Wei & Qian, Xiaoye, 2013. "Regional disparity of labor's share in China: Evidence and explanation," China Economic Review, Elsevier, vol. 27(C), pages 277-293.
  3. Akgüc, Mehtap & Giulietti, Corrado & Zimmermann, Klaus F., 2013. "The RUMiC Longitudinal Survey: Fostering Research on Labor Markets in China," IZA Discussion Papers 7860, Institute for the Study of Labor (IZA).

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