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Wage Differentials and Ownership Structure in Chinese Enterprises


Author Info

  • Martin FOURNIER

    (Groupe d'Analyse et de Théorie Economique - Université Lyon II)

  • Sylvie DEMURGER

    (Groupe d'Analyse et de Théorie Economique - Université Lyon II)

  • Yu CHEN

    (Université de Macau)


This paper analyses the determinants of wage differentials among different ownership enterprises in urban China in 1955,using an extended version of Oaxaca-Blinder decomposition methods. We find higher wages in state-owned and foreign-invested enterprises compared to urban collectives, but no significant difference in hourly wages between central state-owned and foreign-invested enterprises. Moreover, we find strong evidence for segmentation on the Chinese labor market, the conjunction of segmentation and differences in hours worked being the major determinant of observed differences. We also show that, although foreign-invested enterprises allow for higher global annual income, it is at the cost of longer working hours.

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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 200320.

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Length: 47
Date of creation: 2003
Date of revision:
Publication status: Published in , 2004, pages
Handle: RePEc:cdi:wpaper:444

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Keywords: China.; enterprise ownership; segmentation; labour market;

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Cited by:
  1. Ayako Kondo & Dongshu Ou, 2010. "In Search of a Better Life: The Occupational Attainment of Rural and Urban Migrants in China," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0793, Institute of Social and Economic Research, Osaka University.
  2. Grigoriou, Christopher & Guillaumont, Patrick & Yang, Wenyan, 2005. "Child mortality under Chinese reforms," China Economic Review, Elsevier, Elsevier, vol. 16(4), pages 441-464.


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