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The Effects of Market Liberalization on the Relative Earnings of Chinese Women

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Author Info
Margaret Maurer-Fazio ()
James Hughes ()

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Abstract

In this paper we first explore the effects of differences in labor market institutions and the degree of market liberalization on the size and composition of gender wages gaps in China's urban labor markets. We use enterprise-ownership type, enterprise age, and workers' methods of finding employment as proxies for the extent of market liberalization. We find both the size of the wage gaps and the proportion of the gap left unexplained by differences in productive characteristics largest in the most liberalized (joint venture) sector, and smallest in the least liberalized (state) sector. We next investigate the effects of differences in wage structure on the gender wage gaps. We find that differences in wage structure, in general, and the degree of wage dispersion, in particular, are extremely important in accounting for the larger wage gaps in the joint venture and collective sectors relative to the state-owned sector.

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Publisher Info
Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 460.

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Length: 53 pages
Date of creation: 01 Mar 2002
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Handle: RePEc:wdi:papers:2002-460

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Related research
Keywords: China; gender wage gap; labor; market liberalization; earnings;

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Find related papers by JEL classification:
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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References listed on IDEAS
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.:
  1. Chen, Jian & Fleisher, Belton M., 1996. "Regional Income Inequality and Economic Growth in China," Journal of Comparative Economics, Elsevier, vol. 22(2), pages 141-164, April. [Downloadable!] (restricted)
  2. Rawski, Thomas G, 1994. "Chinese Industrial Reform: Accomplishments, Prospects, and Implications," American Economic Review, American Economic Association, vol. 84(2), pages 271-75, May.
  3. Fleisher, Belton M. & Chen, Jian, 1997. "The Coast-Noncoast Income Gap, Productivity, and Regional Economic Policy in China," Journal of Comparative Economics, Elsevier, vol. 25(2), pages 220-236, October. [Downloadable!] (restricted)
  4. Lee, Jongchul, 2000. "Changes in the source of China's regional inequality," China Economic Review, Elsevier, vol. 11(3), pages 232-245. [Downloadable!] (restricted)
  5. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl.. [Downloadable!] (restricted)
  6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October. [Downloadable!] (restricted)
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  7. Jefferson, Gary H & Rawski, Thomas G, 1994. "Enterprise Reform in Chinese Industry," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 47-70, Spring. [Downloadable!] (restricted)
  8. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    Other versions:
  9. Bronars, Stephen G & Famulari, Melissa, 1997. "Wage, Tenure, and Wage Growth Variation within and across Establishment," Journal of Labor Economics, University of Chicago Press, vol. 15(2), pages 285-317, April. [Downloadable!] (restricted)
  10. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, vol. 88(5), pages 1094-1116, December. [Downloadable!] (restricted)
  11. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
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Cited by:
(explanations, 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.)

  1. Sylvie DEMURGER & Martin FOURNIER & CHEN Yi, 2006. "The Evolution of Gender Earnings Gaps and Discrimination in Urban China: 1988-1995," Working Papers 23, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
    Other versions:
  2. Stephanie Seguino, 2005. "Gender Inequality in a Globalizing World," Economics Working Paper Archive wp_426, Levy Economics Institute, The. [Downloadable!]
    Other versions:
  3. Chi, Wei & Li, Bo, 2007. "Glass Ceiling or Sticky Floor? Examining the Gender Pay Gap across the Wage Distribution in Urban China, 1987-2004," MPRA Paper 3544, University Library of Munich, Germany. [Downloadable!]
  4. Ng, Ying Chu, 2006. "Gender Earnings Differentials and Regional Economic Development in Urban China, 1988-97," Working Papers RP2006/136, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  5. Chi, Wei & Li, Bo & Yu, Qiumei, 2007. "Decomposition of Changes in Earnings Inequality in China: A Distributional Approach," MPRA Paper 3806, University Library of Munich, Germany. [Downloadable!]
  6. Yi Chen & Sylvie Démurger & Martin Fournier, 2007. "Différentiels salariaux, segmentation et discrimination à l’égard des femmes sur le marché du travail chinois," Working Papers 0713, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure. [Downloadable!]
    Other versions:
  7. Seguino, Stephanie & Grown, Caren, 2006. "Gender equity and globalization: Macroeconomic policy for developing countries," MPRA Paper 6540, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  8. Ebru Kongar, 2005. "Importing Equality or Exporting Jobs?: Competition and Gender Wage and Employment Differentials in U.S. Manufacturing," Working Paper Series, Department of Economics, University of Utah 2005_13, University of Utah, Department of Economics. [Downloadable!]
  9. Sylvie Démurger & Martin Fournier & Shi Li & Zhong Wei, 2008. "Economic liberalization with rising segmentation in China's urban labor market," Post-Print halshs-00353336_v1, HAL. [Downloadable!]
    Other versions:
  10. Ebru Kongar, 2005. "Importing Equality or Exporting Jobs?: Competition and Gender Wage and Employment Differentials in U.S. Manufacturing," Economics Working Paper Archive wp_436, Levy Economics Institute, The. [Downloadable!]
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