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Differential rewards to, and contributions of, education in urban China's segmented labor markets

  • Margaret Maurer-Fazio
  • Ngan Dinh

Using worker data from a 1999-2000 urban enterprise survey, we examine the effects of education on the current earnings of continuously employed urban workers, migrants and laid off but subsequently re-employed workers. We also decompose the earnings differentials between each of these groups of workers and then assess the contribution of education to explanations of the differentials. The empirical results demonstrate that returns to education increase with marketization and competition in the workplace. We also find educational attainment to be an important explanator of the earnings differentials between institutionally differentiated groups of workers in China's urban labor markets. Copyright 2004 Blackwell Publishing Ltd

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Article provided by Wiley Blackwell in its journal Pacific Economic Review.

Volume (Year): 9 (2004)
Issue (Month): 3 (October)
Pages: 173-189

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Handle: RePEc:bla:pacecr:v:9:y:2004:i:3:p:173-189
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  1. 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.
  2. Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September.
  3. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  4. Knight, J & Song, L & Huaibin, J, 1997. "Chinese Rural Migrants in Urban Enterprises : Three Perspectives," Economics Series Working Papers 99190, University of Oxford, Department of Economics.
  5. Xin Meng, 2004. "Economic Restructuring and Income Inequality in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 50(3), pages 357-379, 09.
  6. Roberts, Kenneth D., 2001. "The determinants of job choice by rural labor migrants in Shanghai," China Economic Review, Elsevier, vol. 12(1), pages 15-39.
  7. C Cindy Fan, 2001. "Migration and labor-market returns in urban China: results from a recent survey in Guangzhou," Environment and Planning A, Pion Ltd, London, vol. 33(3), pages 479-508, March.
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