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The regional distribution of skill premia in urban China: Implications for growth and inequality

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  • John WHALLEY
  • Chunbing XING

Abstract

Based on urban household survey data, the authors find that skill premia increased significantly across all regions of China between 1995 and 2002, but only in coastal regions between 2002 and 2007. By then, these regions also displayed much wider wage inequality and thus contributed more to overall urban wage inequality than non-coastal regions. While privatization was the main driver of skill premia in 1995–2002, China's (regionally uneven) integration into the global economy became the dominant influence in 2002–07. Reducing skill premia and inequality, the authors argue, calls for reform of the Hukou registration system which impedes skilled labour mobility and possibly also growth.

Suggested Citation

  • John WHALLEY & Chunbing XING, 2014. "The regional distribution of skill premia in urban China: Implications for growth and inequality," International Labour Review, International Labour Organization, vol. 153(3), pages 395-419, September.
    • Handle: RePEc:bla:intlab:v:153:y:2014:i:3:p:395-419
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    2. Jeffrey Zax, 2016. "Provincial valuations of human capital in urban China, inter-regional inequality and the implicit value of a Guangdong hukou," ERSA conference papers ersa16p693, European Regional Science Association.
    3. Luo, Dongdong & Xing, Chunbing, 2016. "Population adjustments in response to local demand shifts in China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 101-114.
    4. Wenjia ZHUANG & Kinglun NGOK, 2014. "Labour inspection in contemporary China: Like the Anglo-Saxon model, but different," International Labour Review, International Labour Organization, vol. 153(4), pages 561-585, December.
    5. Xing, Chunbing, 2016. "Human Capital and Urbanization in the People’s Republic of China," ADBI Working Papers 603, Asian Development Bank Institute.
    6. Luo, Dongdong & Xing, Chunbing, 2015. "Who Is More Mobile in Response to Local Demand Shifts in China?," IZA Discussion Papers 9063, Institute of Labor Economics (IZA).
    7. M Niaz Asadullah & Saizi Xiao, 2019. "Labor Market Returns to Education and English Language Skills in the People's Republic of China: An Update," Asian Development Review, MIT Press, vol. 36(1), pages 80-111, March.
    8. Huang, Mian & Xing, Chunbing & Cui, Xiaoyong, 2019. "Does College Location Affect the Location Choice of New College Graduates? Evidence from China," IZA Discussion Papers 12462, Institute of Labor Economics (IZA).
    9. Ying ZHU & Peter Y. CHEN & Wei ZHAO, 2014. "Injured workers in China: Injustice, conflict and social unrest," International Labour Review, International Labour Organization, vol. 153(4), pages 635-647, December.
    10. Zhikai WANG, 2014. "China's “labour shortage” and migrant workers' lack of social security," International Labour Review, International Labour Organization, vol. 153(4), pages 649-658, December.
    11. Asadullah, M. Niaz & Xiao, Saizi, 2020. "The changing pattern of wage returns to education in post-reform China," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 137-148.
    12. Jiantao Zhou & Eddie Chi‐Man Hui, 2022. "The hukou system and selective internal migration in China," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 461-482, April.
    13. Shi Li & ShanshanWu & Chunbing Xing, 2018. "Education Development and Wage Inequality in Urban China," Asian Economic Papers, MIT Press, vol. 17(2), pages 140-151, Summer.

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