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Wage Reforms in China During the 1990s


  • Linda Y. Yueh


In urban areas of China, economic reforms were intensely implemented after 1984. We focus on two primary aspects of the reforms in the 1990s, those pertaining to the labor market and to wages. Based on original interviews and two unique household data sets, we investigate the effects of the reforms. Our first finding is that the components of annual income have changed, reflecting fewer subsidies and more diverse sources of income (such as self-employment), over the period from 1995 to 1999. By 1999, the wage structure reflects less seniority-based pay, allows for more discretion in rewarding non-productive characteristics (gender and Communist Party membership, for example) and also permits more productivity-related pay (as evidenced by increased returns to human capital). Copyright 2004 East Asian Economic Association.

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  • Linda Y. Yueh, 2004. "Wage Reforms in China During the 1990s," Asian Economic Journal, East Asian Economic Association, vol. 18(2), pages 149-164, June.
  • Handle: RePEc:bla:asiaec:v:18:y:2004:i:2:p:149-164

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    1. Yi Chen & Sylvie Démurger & Martin Fournier, 2006. "The Evolution of Gender Eamings Gaps and Discrimination in Urban China : 1988-1995," Post-Print hal-00081928, HAL.
    2. Geiger, Michael, 2006. "Monetary Policy in China (1994-2004): Targets, Instruments and their Effectiveness," W.E.P. - Würzburg Economic Papers 68, University of Würzburg, Chair for Monetary Policy and International Economics.
    3. Chen, Yi & Demurger, Sylvie & Fournier, Martin, 2005. "Earnings Differentials and Ownership Structure in Chinese Enterprises," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 933-958, July.
    4. Kato, Takao & Long, Cheryl, 2006. "Executive Compensation, Firm Performance, and Corporate Governance in China: Evidence from Firms Listed in the Shanghai and Shenzhen Stock Exchanges," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 945-983, July.
    5. Wasseem Mina & Louis Jaeck, 2015. "Labor Market Flexibility and FDI Flows: Evidence from Oil-Rich GCC and Middle Income Countries," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1501, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    6. Ng, Ying Chu, 2006. "Gender Earnings Differentials and Regional Economic Development in Urban China, 1988-97," WIDER Working Paper Series 136, World Institute for Development Economic Research (UNU-WIDER).
    7. Sylvie DÉMURGER & Martin FOURNIER & Yi CHEN, 2007. "The Evolution Of Gender Earnings Gaps And Discrimination In Urban China, 1988-95," The Developing Economies, Institute of Developing Economies, vol. 45(1), pages 97-121.
    8. Ryota Kojima & Shinya Nakamura & Shinsuke Ohyama, 2005. "Inflation Dynamics in China," Bank of Japan Working Paper Series 05-E-9, Bank of Japan.
    9. Cao, Jerry & Pan, Xiaofei & Tian, Gary, 2011. "Disproportional ownership structure and pay-performance relationship: Evidence from China's listed firms," Journal of Corporate Finance, Elsevier, vol. 17(3), pages 541-554, June.
    10. Firth, Michael & Fung, Peter M.Y. & Rui, Oliver M., 2006. "Corporate performance and CEO compensation in China," Journal of Corporate Finance, Elsevier, vol. 12(4), pages 693-714, September.
    11. Linda Yueh, 2008. "How Productive is Chinese Labour? The Contributions of Labour Market Reforms, Competition and Globalisation," Economics Series Working Papers 418, University of Oxford, Department of Economics.
    12. Cui, Yuling & Nahm, Daehoon & Tani, Massimiliano, 2012. "The Determinants of Rural Migrants' Employment Choice in China: Results from a Joint Estimation," IZA Discussion Papers 6968, Institute for the Study of Labor (IZA).
    13. Stefan Gravemeyer & Thomas Gries & Jinjun Xue, 2008. "Discrimination, Income Determination and Inequality – The case of Shenzhen," Working Papers CIE 16, Paderborn University, CIE Center for International Economics.
    14. Yueh, Linda, 2009. "China's Entrepreneurs," World Development, Elsevier, vol. 37(4), pages 778-786, April.
    15. Chen Lin & Wei Shen & Dongwei Su, 2011. "Executive Pay at Publicly Listed Firms in China," Economic Development and Cultural Change, University of Chicago Press, vol. 59(2), pages 417-436.
    16. Linda Yueh, 2010. "The Economy of China," Books, Edward Elgar Publishing, number 3705.
    17. Xiangquan Zeng & Liwen Chen & Zhongxing Su, 2014. "The evolution of human resource management in China: traditions, reforms and developments," Chapters,in: The Development of Human Resource Management Across Nations, chapter 5, pages 92-122 Edward Elgar Publishing.
    18. Quheng Deng & Shi Li, 2009. "What Lies behind Rising Earnings Inequality in Urban China? Regression-based Decompositions," CESifo Economic Studies, CESifo, vol. 55(3-4), pages 598-623.

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