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An examination of wage determination in China’s rural industrial sector

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  • meng, xin
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Abstract

Under traditional Chinese socialist ideology, labour is not considered as a commodity, and wages are not viewed as the price of labour. Market oriented economic reform initiated in the late 1970s, however, has brought some changes to this politically sensitive area—pricing and allocation of labour, especially in the rural industrial sector, are now much more sensitive to market pressures. This paper surveys the performance of labour markets in China's rural industrial sector after 10 years of economic reform. It examines whether conventional models of wage determination, modified to reflect the peculiar circumstances of the Chinese rural labour market, can be used to explain variations in wages in this sector of China. It is found that after only a decade of change, the pattern of wage determination in rural China has many parallels with wage determination in Western countries.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1344.

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Date of creation: 1994
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Publication status: Published in Applied Economics 28.1(1995): pp. 715-724
Handle: RePEc:pra:mprapa:1344

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Keywords: wage; china;

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References

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  1. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
  2. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  3. Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288, April.
  4. Hawke, A., 1991. "Male-Female Wage Differentials: How Important is Occupational Segragation? ," CEPR Discussion Papers 256, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  5. George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
  6. Miller, Paul W, 1987. "The Wage Effect of the Occupational Segregation of Women in Britain," Economic Journal, Royal Economic Society, vol. 97(388), pages 885-96, December.
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Cited by:
  1. Xing, Chunbing, 2010. "Migration, Self-Selection, and Income Distributions: Evidence from Rural and Urban China," IZA Discussion Papers 4979, Institute for the Study of Labor (IZA).
  2. Zhongmin Wu & Shujie Yao, 2006. "On Unemployment Inflow and Outflow in Urban China," Regional Studies, Taylor & Francis Journals, vol. 40(8), pages 811-822.
  3. Alan de Brauw & Scott Rozelle, 2008. "Reconciling the Returns to Education in Off-Farm Wage Employment in Rural China," Review of Development Economics, Wiley Blackwell, vol. 12(1), pages 57-71, 02.
  4. Chunbing, Xing, 2006. "Human Capital and Wage Determination in Different Ownerships, 1989-97," Working Paper Series RP2006/121, World Institute for Development Economic Research (UNU-WIDER).

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