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Wage flexibility in the Chinese labour market, 1989–2009

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  • Lili Kang
  • Fei Peng

Abstract

Wage flexibility in the Chinese labour market, 1989–2009. Regional Studies. China’s bureaucratic wage determination system is gradually being replaced by a market-based system, leading to a novel version of a dual labour market. This paper studies wage flexibility in this dual market. Its principal findings are as follows: wages in both sectors have become less responsive to changes in official registered unemployment, with an alternative market-based measure of unemployment becoming more relevant; there is evidence of convergence of flexibility between the two sectors; the wages of women exhibit greater flexibility than those of men; and there is evidence of differences in wage flexibility between workers who have urban residential rights and rural migrants.

Suggested Citation

  • Lili Kang & Fei Peng, 2017. "Wage flexibility in the Chinese labour market, 1989–2009," Regional Studies, Taylor & Francis Journals, vol. 51(4), pages 616-628, April.
    • Handle: RePEc:taf:regstd:v:51:y:2017:i:4:p:616-628
    DOI: 10.1080/00343404.2016.1177173
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    More about this item

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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