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Earnings Differentials between the Public and Private Sectors in China: Exploring Changes for Urban Local Residents in the 2000s

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  • Sylvie Démurger

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

  • Shi Li

    (School of Economics and Business Administration - Beijing Normal University / Beijing)

  • Juan Yang

    (School of Economics and Business Administration - Beijing Normal University / Beijing)

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 sectors decreased 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 trend is in sharp contrast to what occurred at the turn of the 21st century when employees the government and state-owned enterprises were found to enjoy a privileged situation. Differences in endowments are found to play a growing role in explaining earnings differentials. However, although it is becoming less of 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-00627719.

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Date of creation: 2012
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Publication status: Published, China Economic Review, 2012, 23, 1, pp. 138-153
Handle: RePEc:hal:journl:halshs-00627719

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

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Cited by:
  1. Chi, Wei & Xiaoye, Qian, 2011. "Regional disparity of labor’s share in China: Evidence and explanation," MPRA Paper 34522, University Library of Munich, Germany.
  2. C. Duvivier & S. Li & M.-F. Renard, 2013. "Are workers close to cities paid higher nonagricultural wages in rural China?," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4308-4322, October.
  3. Akgüc, Mehtap & Giulietti, Corrado & Zimmermann, Klaus F., 2013. "The RUMiC Longitudinal Survey: Fostering Research on Labor Markets in China," IZA Discussion Papers 7860, Institute for the Study of Labor (IZA).

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