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Wage differentials between urban and rural-urban migrant workers in China

Author

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  • Zhang, Li
  • Sharpe, Rhonda Vonshay
  • Li, Shi
  • Darity, William A.

Abstract

Since the end of the 1980s, the number of migrants working in the urban labor market has increased dramatically. However, migrant workers are treated differently from urban workers. In this paper we examine the labor market discrimination against rural migrants from the point of view of wage differentials using CHIP-2007 data. We apply Jann pooled method to deal with index number problem and use Heckman two step model to correct selection problem when decomposing the wage gap. The decomposition results show that a significant difference in wage gains persists between the two groups as late as 2007. In 2007 migrants only earned 49% of urban workers' income and 17% of the wage gap cannot be explained by observed factors. In detail, differences in educational attainment, work experience and distribution across industry, occupation, and ownership of enterprises account for most of the explained wage gap.

Suggested Citation

  • Zhang, Li & Sharpe, Rhonda Vonshay & Li, Shi & Darity, William A., 2016. "Wage differentials between urban and rural-urban migrant workers in China," China Economic Review, Elsevier, vol. 41(C), pages 222-233.
  • Handle: RePEc:eee:chieco:v:41:y:2016:i:c:p:222-233
    DOI: 10.1016/j.chieco.2016.10.004
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    References listed on IDEAS

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    Cited by:

    1. Yuanyuan Chen & Zichen Deng, 2019. "Liquidity Constraint Shock, Job Search and Post Match Quality—Evidence from Rural-to-Urban Migrants in China," Journal of Labor Research, Springer, vol. 40(3), pages 332-355, September.
    2. GAO Tianming & Anna Ivolga & Vasilii Erokhin, 2018. "Sustainable Rural Development in Northern China: Caught in a Vice between Poverty, Urban Attractions, and Migration," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-20, May.
    3. Christian Dreger & Yanqun Zhang, 2017. "The Hukou Impact on the Chinese Wage Structure," Discussion Papers of DIW Berlin 1660, DIW Berlin, German Institute for Economic Research.
    4. Jonathan Haughton & Wendi Sun & Le Thi Thanh Loan, 2018. "Discrimination against Migrants in Urban Vietnam," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(3), pages 211-232, August.
    5. Haijun Bao & Yan Fang & Qunying Ye & Yi Peng, 2018. "Investigating Social Welfare Change in Urban Village Transformation: A Rural Migrant Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(2), pages 723-743, September.
    6. Liao, Yu & Zhang, Junfu, 2020. "Hukou Status, Housing Tenure Choice and Wealth Accumulation in Urban China," IZA Discussion Papers 13836, Institute of Labor Economics (IZA).
    7. Pan, Liqun & Mukhopadhaya, Pundarik & Li, Jing, 2019. "The changing texture of the city-size wage differential in Chinese cities – Effects of skill and identity," China Economic Review, Elsevier, vol. 53(C), pages 191-210.
    8. Gui Ye & Yuhe Wang & Yuxin Zhang & Liming Wang & Houli Xie & Yuan Fu & Jian Zuo, 2019. "Impact of Migrant Workers on Total Factor Productivity in Chinese Construction Industry," Sustainability, MDPI, Open Access Journal, vol. 11(3), pages 1-18, February.

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