Wage Inequality of Chinese Rural-Urban Migrants Between 2002 and 2007
AbstractThe paper studies the levels and changes in wage inequality among Chinese rural-urban migrants from 2002 to 2007. We use the Chinese Household Income Project dataset and the Rural to Urban Migration in China dataset to construct a unique dataset that allows us to document changing wage inequality among migrants and among urban natives between 2002 and 2007. We find that wage inequality among migrants decreased significantly between 2002 and 2007, whereas it increased among urban natives during the same period. Our results show that the high-wage migrants experienced slower wage growth than middle- and low-wage migrants, a primary cause of declining inequality among migrants. We used distributional decomposition methods, and find that the overall between-group effect (coefficient effect) dominates in the whole wage distribution of the migrants, which means that the change in returns to the characteristics (education and experience) play a key role, but on the upper tails of the wage distribution, the within group effect (residual price effect) dominates which implies that the unobservable factors or institutional barriers do not favor the migrants at the top tail of the wage distribution.
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Bibliographic InfoPaper provided by PEP-PMMA in its series Working Papers PMMA with number 2013-04.
Date of creation: 2013
Date of revision:
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More information through EDIRC
rural to urban migrants; wage inequality; quantity decomposition; China;
Find related papers by JEL classification:
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-28 (All new papers)
- NEP-LAB-2013-09-28 (Labour Economics)
- NEP-LMA-2013-09-28 (Labor Markets - Supply, Demand, & Wages)
- NEP-MIG-2013-09-28 (Economics of Human Migration)
- NEP-TRA-2013-09-28 (Transition Economics)
- NEP-URE-2013-09-28 (Urban & Real Estate 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.:
- Qu, Zhaopeng (Frank) & Zhao, Zhong, 2011. "Evolution of the Chinese Rural-Urban Migrant Labor Market from 2002 to 2007," IZA Discussion Papers 5421, Institute for the Study of Labor (IZA).
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- Xing, Chunbing & Li, Shi, 2012.
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China Economic Review,
Elsevier, vol. 23(2), pages 205-222.
- Xing, Chunbing, 2010. "Residual Wage Inequality in Urban China, 1995-2007," IZA Discussion Papers 5003, Institute for the Study of Labor (IZA).
- Thomas Lemieux, 2006. "Increasing Residual Wage Inequality: Composition Effects, Noisy Data, or Rising Demand for Skill?," American Economic Review, American Economic Association, vol. 96(3), pages 461-498, June.
- Dandan Zhang & Xin Meng & Dewen Wang, 2010. "The Dynamic Change in Wage Gap between Urban Residents and Rural Migrants in Chinese Cities," Working Papers PMMA 2010-03, PEP-PMMA.
- Denise Hare, 1999. "'Push' versus 'pull' factors in migration outflows and returns: Determinants of migration status and spell duration among China's rural population," Journal of Development Studies, Taylor & Francis Journals, vol. 35(3), pages 45-72.
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