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Glass ceiling or sticky floor? Examining the gender earnings differential across the earnings distribution in urban China, 1987-2004

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  • Chi, Wei
  • Li, Bo

Abstract

Using 1987, 1996, and 2004 data, we show that the gender earnings differential in the Chinese urban labor market has increased across the earnings distribution, and the increase was greater at the lower quantiles. We interpret this as evidence of the stronger "sticky floor" effect. We use the reweighting and recentered influence function regression methods proposed by Firpo, Fortin, Lemieux to decompose gender earnings differentials across the earnings distribution [Firpo, S., Fortin, N.M., Lemieux, T., 2007a. Unconditional quantile regressions. Technical working paper No. 339, NBER; Firpo, S., Fortin, N.M., Lemieux, T., 2007b. Decomposing wage distributions using influence function projections. Working paper. Department of Economics, University of British Columbia]. We find that gender differences in the return to labor market characteristics, also known as the "discrimination effect" or "unexplained gender pay gap," contribute more to the increase in the overall gender earnings differential than do the gender endowment differences. The Firpo et al. method allows us to further decompose the gender earnings gap into the contribution of each individual variable. We find that the "sticky floor" effect may be associated with a particularly low paid group of female production workers with relatively low education working in non-state owned enterprises. Journal of Comparative Economics 36 (2) (2008) 243-263.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 36 (2008)
Issue (Month): 2 (June)
Pages: 243-263

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Handle: RePEc:eee:jcecon:v:36:y:2008:i:2:p:243-263

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Web page: http://www.elsevier.com/locate/inca/622864

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Cited by:
  1. Tamar Khitarishvili, 2013. "Evaluating the Gender Wage Gap in Georgia, 2004 - 2011," Economics Working Paper Archive, Levy Economics Institute wp_768, Levy Economics Institute.
  2. Liangshu Qi & Xiao-Yuan Dong, 2013. "Housework Burdens, Quality of Market Work Time, and Men’s and Women’s Earnings in China," Departmental Working Papers, The University of Winnipeg, Department of Economics 2013-01, The University of Winnipeg, Department of Economics.
  3. Leonardo Becchetti & Riccardo Massari & Paolo Naticchioni, 2011. "The drivers of happiness inequality: Suggestions for promoting social cohesion," Working Papers, Universita' di Cassino, Dipartimento di Scienze Economiche 2011-06, Universita' di Cassino, Dipartimento di Scienze Economiche.
  4. Nix, Emily & Gamberoni, Elisa & Heath, Rachel, 2014. "Bridging the gap : identifying what is holding self-employed women back in Ghana, Rwanda, Tanzania, the Republic of Congo, and Uganda," Policy Research Working Paper Series, The World Bank 6946, The World Bank.
  5. Gustafsson, Björn Anders & Li, Shi & Sato, Hiroshi, 2014. "Data for Studying Earnings, the Distribution of Household Income and Poverty in China," IZA Discussion Papers 8244, Institute for the Study of Labor (IZA).
  6. Lam, Kevin C.K. & McGuinness, Paul B. & Vieito, João Paulo, 2013. "CEO gender, executive compensation and firm performance in Chinese‐listed enterprises," Pacific-Basin Finance Journal, Elsevier, Elsevier, vol. 21(1), pages 1136-1159.
  7. Giles, John & Wang, Dewen & Park, Albert, 2013. "Expanding social insurance coverage in urban China," Policy Research Working Paper Series, The World Bank 6497, The World Bank.

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