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Real wage cyclicality in urban China

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  • Kang, Lili
  • Peng, Fei

Abstract

This paper investigates the cyclical behaviour of real wages in urban China using the China Health and Nutrition Survey (CHNS) 1989-2006. Using changes in the unemployment rate as the cyclical measure, we find pro-cyclicality in the public sector and small/medium firms, but not in big firms. We also find real wages of male, high educated or ever married workers are flexible. Including bonuses increases the pro-cyclicality of regular wages.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 45418.

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Date of creation: 01 Dec 2010
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Publication status: Published in Economics Letters 2.115(2012): pp. 141-143
Handle: RePEc:pra:mprapa:45418

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Keywords: Real wage cyclicality; Panel data; CHNS; Coordination;

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  1. Appleton, Simon & Song, Lina & Xia, Qingjie, 2005. "Has China crossed the river? The evolution of wage structure in urban China during reform and retrenchment," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 644-663, December.
  2. Devereux, Paul J. & Hart, Robert A., 2005. "Real Wage Cyclicality of Job Stayers, Within-Company Job Movers, and Between-Company Job Movers," IZA Discussion Papers 1651, Institute for the Study of Labor (IZA).
  3. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, Elsevier, vol. 32(3), pages 385-397, August.
  4. Paul J. Devereux, 2001. "The Cyclicality of real wages within employer-employee matches," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(4), pages 835-850, July.
  5. Laurence Ball & David Romer, 1987. "Sticky Prices as Coordination Failure," NBER Working Papers 2327, National Bureau of Economic Research, Inc.
  6. Gary Solon & Robert Barsky & Jonathan A. Parker, 1992. "Measuring the Cyclicality of Real Wages: How Important is Composition Bias," NBER Working Papers 4202, National Bureau of Economic Research, Inc.
  7. Gary Solon & Warren Whatley & Ann Huff Stevens, 1997. "Wage changes and intrafirm job mobility over the business cycle: Two case studies," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(3), pages 402-415, April.
  8. Fei Peng & W. Stanley Siebert, 2008. "Real Wage Cyclicality in Italy," LABOUR, CEIS, CEIS, vol. 22(4), pages 569-591, December.
  9. Zhongmin Wu, 2004. "Wage curve for urban China: a panel data approach," Applied Economics Letters, Taylor & Francis Journals, Taylor & Francis Journals, vol. 11(7), pages 425-428.
  10. Meng, Xin & Kidd, Michael P., 1997. "Labor Market Reform and the Changing Structure of Wage Determination in China's State Sector during the 1980s," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 403-421, December.
  11. Richard Freeman, 2008. "Labor Market Institutions Around the World," CEP Discussion Papers dp0844, Centre for Economic Performance, LSE.
  12. Shin, Donggyun, 1994. "Cyclicality of real wages among young men," Economics Letters, Elsevier, Elsevier, vol. 46(2), pages 137-142, October.
  13. Lora Sabin, 1999. "The development of urban labour markets: China's urban wage curve, 1980-92," Journal of Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(3), pages 134-152.
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Cited by:
  1. Kang, Lili & Peng, Fei, 2012. "Selection and Real wage cyclicality: Germany Case," MPRA Paper 42452, University Library of Munich, Germany.
  2. Kang, Lili & Peng, Fei, 2013. "Economic Reform and Productivity Convergence in China," MPRA Paper 50810, University Library of Munich, Germany.
  3. Peng, Fei & Kang, Lili, 2013. "Wage Flexibility in Chinese Labor Market 1989-2009," MPRA Paper 46651, University Library of Munich, Germany.

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