Earnings Instability and Earnings Inequality in Urban China: 1989â€“2006
AbstractThis paper investigates the evolution of earnings inequality in urban China from 1989 to 2006. After decomposing the variance of log of earnings into transitory and permanent two parts, we find that both components are important contributors to the total variance of earnings. We also find that the share of the transitory part has been decreasing from early 1990 to 2004; however, this decreasing trend is reversed from 2004 to 2006. Compared female to male, though these two populations share similar trends in the changes of transitory and permanent components, changes are more pronounced for female than for male. Our results suggest that the time-invariant part and time related part in permanent earnings are negatively correlated. This implies converge of earnings profile in long run and also implies that there is more mobility within the distribution of long-term earnings. [IZA Discussion Paper No. 3270]
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by eSocialSciences in its series Working Papers with number id:2783.
Date of creation: Aug 2010
Date of revision:
Note: Institutional Papers
Contact details of provider:
Web page: http://www.esocialsciences.org
earnings inequality; covariance structure of earnings; China;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-28 (All new papers)
- NEP-LAB-2010-08-28 (Labour Economics)
- NEP-TRA-2010-08-28 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John Bound & Alan B. Krueger, 1989.
"The Extent of Measurement Error In Longitudinal Earnings Data: Do Two Wrongs Make A Right?,"
NBER Working Papers
2885, National Bureau of Economic Research, Inc.
- Bound, John & Krueger, Alan B, 1991. "The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right?," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 1-24, January.
- John M. Abowd & David Card, 1986.
"On the Covariance Structure of Earnings and Hours Changes,"
NBER Working Papers
1832, National Bureau of Economic Research, Inc.
- Abowd, John M & Card, David, 1989. "On the Covariance Structure of Earnings and Hours Changes," Econometrica, Econometric Society, vol. 57(2), pages 411-45, March.
- Khor, Niny & Pencavel, John, 2006.
"Income Mobility of Individuals in China and the United States,"
IZA Discussion Papers
2003, Institute for the Study of Labor (IZA).
- Niny Khor & John Pencavel, 2006. "Income mobility of individuals in China and the United States," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(3), pages 417-458, 07.
- Niny Khor & John Pencavel, 2006. "Income Mobility of Individuals In China and the United States," Discussion Papers 05-009, Stanford Institute for Economic Policy Research.
- Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
- John Whalley & Ximing Yue, 2006.
"Rural Income Volatility and Inequality in China,"
NBER Working Papers
12779, National Bureau of Economic Research, Inc.
- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2001.
"Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey,"
Journal of Human Resources,
University of Wisconsin Press, vol. 36(3), pages 556-592.
- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2004. "Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey," Labor and Demography 0408007, EconWPA.
- Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2000. "Lost But Not Forgotten: Attrition and Follow-up in the Indonesian Family Life Survey," Working Papers 00-03, RAND Corporation Publications Department.
- Akee, Randall K. Q., 2007. "Errors in Self-Reported Earnings: The Role of Previous Earnings Volatility," IZA Discussion Papers 3263, Institute for the Study of Labor (IZA).
- Dwayne Benjamin & Loren Brandt & Jia-Zhueng Fan, 2003.
"Ceaseless Toil? Health and Labor Supply of the Elderly in Rural China,"
benjamin-03-01, University of Toronto, Department of Economics.
- Dwayne Benjamin & Loren Brandt & Jia-Zhueng Fan, 2003. "Ceaseless Toil? Health and Labor Supply of the Elderly in Rural China," William Davidson Institute Working Papers Series 2003-579, William Davidson Institute at the University of Michigan.
- Dwayne Benjamin & Loren Brandt & John Giles, 2003.
"The Evolution of Income Inequality in Rural China,"
benjamin-04-01, University of Toronto, Department of Economics.
- Lorenzo Cappellari, 2004. "The Dynamics and Inequality of Italian Men’s Earnings: Long-term Changes or Transitory Fluctuations?," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
- Robert A. Moffitt & Peter Gottschalk, 2002. "Trends in the Transitory Variance of Earnings in the United States," Economic Journal, Royal Economic Society, vol. 112(478), pages C68-C73, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Padma Prakash).
If references are entirely missing, you can add them using this form.