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Labor market segmentation by industry sectors and wage gaps between migrants and local urban residents in urban China

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  • Ma, Xinxin

Abstract

This paper explores the influence of labor market segmentation by industry sectors on the wage gap between rural-to-urban migrants and local urban residents in China in the 2000s. Using Chinese Household Income Project (CHIP) survey data and the results based on the Brown decomposition method, the results indicate that the influence of intra-industrial differentials is greater than the influence of inter-industry differentials in both 2002 and 2013. The influence of the explained component of the intra-industry differentials is larger in both 2002 and 2013, and the influence of the unexplained component of the intra-industrial differentials rises steeply from 2002 to 2013. These results show that the individual characteristic differentials (e.g. human capital) in the same industry sector is the main factor causing the wage gap in both 2002 and 2013, and the problem of discrimination against migrants in the same industry sector became more serious from 2002 to 2013.

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  • Ma, Xinxin, 2018. "Labor market segmentation by industry sectors and wage gaps between migrants and local urban residents in urban China," China Economic Review, Elsevier, vol. 47(C), pages 96-115.
    • Handle: RePEc:eee:chieco:v:47:y:2018:i:c:p:96-115
    DOI: 10.1016/j.chieco.2017.11.007
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    11. Gustafsson Björn & Nivorozhkina Ludmila & Wan Haiyuan, 2021. "Working beyond the normal retirement age in urban China and urban Russia," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-21, January.
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    13. Alessia Amighini & Weidi Fang & Martin Zagler, 2023. "On the evolution of the wage premium for party membership in China," Department of Economics Working Papers wuwp351, Vienna University of Economics and Business, Department of Economics.
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    15. Jingwen Tan & Shixi Kang, 2021. "Finding the Instrumental Variables of Household Registration: A discussion of the impact of China's household registration system on the citizenship of the migrant population," Papers 2112.07268, arXiv.org, revised Dec 2021.
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    20. Qian Sun, 2023. "SOE wage premium in China: new evidence," Empirical Economics, Springer, vol. 64(3), pages 1121-1147, March.
    21. Gustafsson, Björn Anders & Nivorozhkina, Ludmila & Wan, Haiyuan, 2021. "Working Beyond the Normal Retirement Age in Urban China and Urban Russia," IZA Discussion Papers 14294, Institute of Labor Economics (IZA).
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    24. Mengdan Li, 2020. "What caused the wage convergence between urban natives and migrants in China?," Economics Bulletin, AccessEcon, vol. 40(3), pages 2275-2288.

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    More about this item

    Keywords

    Segmentation; Industry sector; Wage gap; Migrant; Local urban resident;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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