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Earnings Differentials between the Public and the Private Sectors in China: Explaining Changing Trends for Urban Locals in the 2000s

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Author Info

  • Juan Yang

    (School of Economics and Business - Beijing Normal University)

  • Sylvie Démurger

    ()
    (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon)

  • Shi Li

    (School of Economics and Business - Beijing Normal University)

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 have been reducing 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 is in sharp contrast to what occurred at the turn of the century, when employees of public administration and enterprises were found to enjoy a very much privileged situation. On the one hand, differences in endowments are found to play a growing role in explaining earnings differentials. On the other hand, although starting to become less an issue, segmentation across ownership remains important, especially for high-wage earners.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00550348.

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Date of creation: 2010
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Handle: RePEc:hal:journl:halshs-00550348

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Related research

Keywords: labor market; earnings differentials; segmentation; enterprise ownership; China;

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  1. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
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Cited by:
  1. Kwon, Ohyun & Fleisher, Belton M. & Deng, Quheng, 2011. "Evolution of the Industrial Wage Structure in China Since 1980," IZA Discussion Papers 5880, Institute for the Study of Labor (IZA).
  2. Anthony Rush, 2011. "China's Labour Market," RBA Bulletin, Reserve Bank of Australia, pages 29-38, September.

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