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Bivariate probit analysis of differences between male and female formal employment in urban China

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  • Chen, Guifu
  • Hamori, Shigeyuki

Abstract

Using the 2004 and 2006 pooling data from the China Health and Nutrition Survey (CHNS) questionnaire, this paper studies the differences between male and female employment in urban China, taking into account the interdependence between the decision of women to participate in the workforce and the formal hiring decisions of organizations. We take into account this interdependence issue using a bivariate probit model. When certain unobserved factors are ignored that may otherwise influence both the decision of women to participate in the workforce and the formal recruitment decisions of organizations, the results denote that the estimated coefficients of the equation corresponding to the formal hiring of female employees are inconsistent. On the other hand, the results indicate that the conditional formal employment probability of women, which can be obtained through a censored bivariate probit from an all-female sample, was about 3% lower than the unconditional probability obtained through a univariate probit from a sample of only labor market participants. Moreover, the results show that the formal employment probability differential (between males and females), owing to discrimination, will be overestimated in the case of a univariate probit model.

Suggested Citation

  • Chen, Guifu & Hamori, Shigeyuki, 2010. "Bivariate probit analysis of differences between male and female formal employment in urban China," Journal of Asian Economics, Elsevier, vol. 21(5), pages 494-501, October.
    • Handle: RePEc:eee:asieco:v:21:y:2010:i:5:p:494-501
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    References listed on IDEAS

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    1. Guifu Chen & Shigeyuki Hamori, 2014. "Do Chinese Employers Discriminate Against Females When Hiring Employees?," SpringerBriefs in Economics, in: Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, edition 127, chapter 0, pages 39-51, Springer.
    2. Madhu Mohanty, 1998. "Do US employers discriminate against females when hiring their employees?," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1471-1482.
    3. CHEN, Guifu & HAMORI, Shigeyuki, 2009. "Economic returns to schooling in urban China: OLS and the instrumental variables approach," China Economic Review, Elsevier, vol. 20(2), pages 143-152, June.
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    8. Meng, Chun-Lo & Schmidt, Peter, 1985. "On the Cost of Partial Observability in the Bivariate Probit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 71-85, February.
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    11. Madhu Mohanty, 2002. "A bivariate probit approach to the determination of employment: a study of teen employment differentials in Los Angeles County," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 143-156.
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    2. Zhanhui Fu & Hongqiang Jiang & Jiajun Qiao & Xiaojun Jiang & Weichun He, 2023. "Gender Differences in Migrant Workers’ Wages and Their Influencing Factors in the Central Hilly Regions of China," Land, MDPI, vol. 12(7), pages 1-16, July.

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