IDEAS home Printed from https://ideas.repec.org/a/bpj/bejeap/vcontributions.5y2006i1n5.html
   My bibliography  Save this article

A Distributional Analysis of the Gender Earnings Gap in Urban China

Author

Listed:
  • Millimet Daniel L

    (Southern Methodist University)

  • Wang Le

    (Southern Methodist University)

Abstract

We compare several income distributions in urban China in the late 1980s and mid-1990s using tests for stochastic dominance in order to decompose gender differentials. Examination of the entire distribution gives insight into the uniformity of such differentials across the distribution. Moreover, tests based on stochastic dominance allow for robust welfare comparisons. Our analysis reveals: (i) large and increasing differentials in predicted earnings across gender in the lower tail of the distribution, but few differences in the upper tail, (ii) discrimination explains one-third to one-half of the total predicted earnings differential in the lower tail of the distribution, and little of the disparity in the upper tail, (iii) gender equity has eroded during China's economic transition, particularly for the youngest cohort, and (iv) significant nonuniformities in earnings differentials suggest the need to broaden analyses of gender differentials to incorporate earnings dispersion.

Suggested Citation

  • Millimet Daniel L & Wang Le, 2006. "A Distributional Analysis of the Gender Earnings Gap in Urban China," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-50, February.
  • Handle: RePEc:bpj:bejeap:v:contributions.5:y:2006:i:1:n:5
    DOI: 10.1515/1538-0645.1461
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/1538-0645.1461
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.1515/1538-0645.1461?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    2. Stephen G. Donald & David A. Green & Harry J. Paarsch, 2000. "Differences in Wage Distributions Between Canada and the United States: An Application of a Flexible Estimator of Distribution Functions in the Presence of Covariates," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 609-633.
    3. Jenkins, Stephen P., 1994. "Earnings discrimination measurement : A distributional approach," Journal of Econometrics, Elsevier, vol. 61(1), pages 81-102, March.
    4. Nicole M. Fortin & Thomas Lemieux, 1998. "Rank Regressions, Wage Distributions, and the Gender Gap," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 610-643.
    5. 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.
    6. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
    7. Dorothe Bonjour & Michael Gerfin, 2001. "The unequal distribution of unequal pay - An empirical analysis of the gender wage gap in Switzerland," Empirical Economics, Springer, vol. 26(2), pages 407-427.
    8. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
    9. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    10. -, 2000. "Study of gender mainstreaming in the Caribbean," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 27456, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    11. Oliver Linton & Esfandiar Maasoumi & Yoon-Jae Whang, 2005. "Consistent Testing for Stochastic Dominance under General Sampling Schemes," Review of Economic Studies, Oxford University Press, vol. 72(3), pages 735-765.
    12. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, Febrero.
    13. John Knight & Lina Song, 2003. "Increasing urban wage inequality in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 597-619, December.
    14. Angel López-Nicolás & Jaume García & Pedro J. Hernández, 2001. "How wide is the gap? An investigation of gender wage differences using quantile regression," Empirical Economics, Springer, vol. 26(1), pages 149-167.
    15. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 2(1), pages 3-10, April.
    16. Abadie A., 2002. "Bootstrap Tests for Distributional Treatment Effects in Instrumental Variable Models," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 284-292, March.
    17. Björn Gustafsson & Shi Li, 2000. "Economic transformation and the gender earnings gap in urban China," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(2), pages 305-329.
    18. Li, Haizheng & Zax, Jeffrey S., 2003. "Labor supply in urban China," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 795-817, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ekaterina Selezneva & Philippe Van Kerm, 2013. "Inequality-adjusted gender wage differentials in Germany," Working Papers 334, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    2. Azam, Mehtabul, 2012. "Changes in Wage Structure in Urban India, 1983–2004: A Quantile Regression Decomposition," World Development, Elsevier, vol. 40(6), pages 1135-1150.
    3. Ekaterina Selezneva & Philippe Van Kerm, 2016. "A distribution-sensitive examination of the gender wage gap in Germany," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 21-40, March.
    4. Rickne, Johanna, 2010. "Gender, Wages, and Social Security in China’s Industrial Sector," Working Paper Series 827, Research Institute of Industrial Economics.
    5. Philippe Van Kerm, 2013. "Generalized measures of wage differentials," Empirical Economics, Springer, vol. 45(1), pages 465-482, August.
    6. Le Wang, 2013. "How Does Education Affect the Earnings Distribution in Urban China?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 435-454, June.
    7. Zheng Fang & Chris Sakellariou, 2015. "Glass Ceilings versus Sticky Floors: Evidence from Southeast Asia and an International Update," Asian Economic Journal, East Asian Economic Association, vol. 29(3), pages 215-242, September.
    8. Lai, Fang, 2010. "Are boys left behind? The evolution of the gender achievement gap in Beijing's middle schools," Economics of Education Review, Elsevier, vol. 29(3), pages 383-399, June.
    9. Wang, Le, 2012. "Economic transition and college premium in urban China," China Economic Review, Elsevier, vol. 23(2), pages 238-252.
    10. Lin Xiu & Morley Gunderson, 2013. "Credential Effects and the Returns to Education in China," LABOUR, CEIS, vol. 27(2), pages 225-248, June.
    11. Liu, Qian, 2012. "Unemployment and labor force participation in urban China," China Economic Review, Elsevier, vol. 23(1), pages 18-33.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Coral Río & Carlos Gradín & Olga Cantó, 2011. "The measurement of gender wage discrimination: the distributional approach revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(1), pages 57-86, March.
    2. Philippe Van Kerm, 2013. "Generalized measures of wage differentials," Empirical Economics, Springer, vol. 45(1), pages 465-482, August.
    3. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    4. Juan D. Barón & Deborah A. Cobb‐Clark, 2010. "Occupational Segregation and the Gender Wage Gap in Private‐ and Public‐Sector Employment: A Distributional Analysis," The Economic Record, The Economic Society of Australia, vol. 86(273), pages 227-246, June.
    5. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    6. Jean-Louis Arcand & Béatrice D'hombres, 2004. "Racial discrimination in the Brazilian labour market: wage, employment and segregation effects," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(8), pages 1053-1066.
    7. Claudio Lucifora & Dominique Meurs, 2006. "The Public Sector Pay Gap In France, Great Britain And Italy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(1), pages 43-59, March.
    8. Sonja C. Kassenböhmer & Mathias Sinning, 2010. "Distributional Changes in the Gender Wage Gap," Ruhr Economic Papers 0220, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. Picchio, Matteo & Mussida, Chiara, 2011. "Gender wage gap: A semi-parametric approach with sample selection correction," Labour Economics, Elsevier, vol. 18(5), pages 564-578, October.
    10. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2013. "The distribution of the gender wage gap in Austria: evidence from matched employer-employee data and tax records [Eine Auswertung von Steuer- und Sozialversicherungsdaten zur Untersuchung der Verte," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(1), pages 19-34, March.
    11. Heinze, Anja, 2010. "Beyond the mean gender wage gap: Decomposition of differences in wage distributions using quantile regression," ZEW Discussion Papers 10-043, ZEW - Leibniz Centre for European Economic Research.
    12. Böheim, René & Himpele, Klemens & Mahringer, Helmut & Zulehner, Christine, 2013. "The distribution of the gender wage gap in Austria : evidence from matched employer-employee data and tax records," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(1), pages 19-34.
    13. repec:zbw:rwirep:0220 is not listed on IDEAS
    14. Landmesser Joanna Małgorzata, 2020. "Differences in the Income Distribution of Households Run by Men and Women by Voivodeships," Folia Oeconomica Stetinensia, Sciendo, vol. 20(1), pages 248-265, June.
    15. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2013. "The distribution of the gender wage gap in Austria: evidence from matched employer-employee data and tax records [Eine Auswertung von Steuer- und Sozialversicherungsdaten zur Untersuchung der Verte," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(1), pages 19-34, March.
    16. Sloczynski, Tymon, 2013. "Population Average Gender Effects," IZA Discussion Papers 7315, Institute of Labor Economics (IZA).
    17. Albrecht, James & van Vuuren, Aico & Vroman, Susan, 2009. "Counterfactual distributions with sample selection adjustments: Econometric theory and an application to the Netherlands," Labour Economics, Elsevier, vol. 16(4), pages 383-396, August.
    18. Robert Breunig & Sandrine Rospabe, 2005. "Parametric vs. semi-parametric estimation of the male-female wage gap: An application to France," ANU Working Papers in Economics and Econometrics 2005-458, Australian National University, College of Business and Economics, School of Economics.
    19. Miamo Wendji, Clovis & Kouhomou, Clemence Zite, 2020. "Ecart salarial de genre au Cameroun : une analyse de son trend et de son ampleur entre 2001 et 2014 [Gender wage gap in Cameroon : an analysis of the trend and extent between 2001 and 2014]," MPRA Paper 100288, University Library of Munich, Germany, revised 10 May 2020.
    20. Juan Prieto Rodríguez & Juan Gabriel Rodríguez & Rafael Salas, 2006. "On The Measurement Of Illegal Wage Discrimination: The Michael Jordan Paradox," Working Papers 38, ECINEQ, Society for the Study of Economic Inequality.
    21. Chi, Wei & Li, Bo, 2008. "Glass ceiling or sticky floor? Examining the gender earnings differential across the earnings distribution in urban China, 1987-2004," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 243-263, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:contributions.5:y:2006:i:1:n:5. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://www.degruyter.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.