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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.

Suggested Citation

  • 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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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ma, Xinxin & Zhang, Jingwen, 2018. "The Timing of Childbearing and Female Labor Supply in China," CEI Working Paper Series 2018-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Sylvie Démurger & Eric A. Hanushek & Lei Zhang, 2019. "Employer Learning and the Dynamics of Returns to Universities: Evidence from Chinese Elite Education during University Expansion," NBER Working Papers 25955, National Bureau of Economic Research, Inc.
    3. Björn Gustafsson & Haiyuan Wan, 2018. "Wage growth and inequality in urban China: 1988–2013," WIDER Working Paper Series 163, World Institute for Development Economic Research (UNU-WIDER).
    4. Xinxin Ma & Jingwen Zhang, 2019. "Population Policy and its Influences on Female Labor Supply: Evidence from China," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(4), pages 261-276, December.

    More about this item

    Keywords

    Segmentation; Industry sector; Wage gap; Migrant; Local urban resident;

    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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