IDEAS home Printed from https://ideas.repec.org/a/eee/jcecon/v36y2008i2p243-263.html
   My bibliography  Save this article

Glass ceiling or sticky floor? Examining the gender earnings differential across the earnings distribution in urban China, 1987-2004

Author

Listed:
  • Chi, Wei
  • Li, Bo

Abstract

Using 1987, 1996, and 2004 data, we show that the gender earnings differential in the Chinese urban labor market has increased across the earnings distribution, and the increase was greater at the lower quantiles. We interpret this as evidence of the stronger "sticky floor" effect. We use the reweighting and recentered influence function regression methods proposed by Firpo, Fortin, Lemieux to decompose gender earnings differentials across the earnings distribution [Firpo, S., Fortin, N.M., Lemieux, T., 2007a. Unconditional quantile regressions. Technical working paper No. 339, NBER; Firpo, S., Fortin, N.M., Lemieux, T., 2007b. Decomposing wage distributions using influence function projections. Working paper. Department of Economics, University of British Columbia]. We find that gender differences in the return to labor market characteristics, also known as the "discrimination effect" or "unexplained gender pay gap," contribute more to the increase in the overall gender earnings differential than do the gender endowment differences. The Firpo et al. method allows us to further decompose the gender earnings gap into the contribution of each individual variable. We find that the "sticky floor" effect may be associated with a particularly low paid group of female production workers with relatively low education working in non-state owned enterprises. Journal of Comparative Economics 36 (2) (2008) 243-263.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:jcecon:v:36:y:2008:i:2:p:243-263
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0147-5967(07)00084-4
    Download Restriction: Full text for ScienceDirect subscribers only

    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. Xin Meng, 1998. "Gender occupational segregation and its impact on the gender wage differential among rural-urban migrants: a Chinese case study," Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 741-752.
    2. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
    3. John Gibson & Jikun Huang & Scott Rozelle, 2003. "Improving Estimates of Inequality and Poverty from Urban China's Household Income and Expenditure Survey," Review of Income and Wealth, International Association for Research in Income and Wealth, pages 53-68.
    4. 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.
    5. Thomas Lemieux, 2002. "Decomposing changes in wage distributions: a unified approach," Canadian Journal of Economics, Canadian Economics Association, vol. 35(4), pages 646-688, November.
    6. 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.
    7. Dong, Xiao-yuan & Bowles, Paul, 2002. "Segmentation and discrimination in China's emerging industrial labor market," China Economic Review, Elsevier, vol. 13(2-3), pages 170-196.
    8. Liqin Zhang & Xiao-Yuan Dong, 2008. "Male-female wage discrimination in Chinese industry," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(1), pages 85-112, January.
    9. Jennifer Hunt, 2002. "The Transition in East Germany: When Is a Ten-Point Fall in the Gender Wage Gap Bad News?," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 148-169, January.
    10. Appleton, Simon & Song, Lina & Xia, Qingjie, 2005. "Has China crossed the river? The evolution of wage structure in urban China during reform and retrenchment," Journal of Comparative Economics, Elsevier, pages 644-663.
    11. Hiau Joo Kee, 2006. "Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap," The Economic Record, The Economic Society of Australia, vol. 82(259), pages 408-427, December.
    12. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    13. Maurer-Fazio, Margaret & Hughes, James, 2002. "The Effects of Market Liberalization on the Relative Earnings of Chinese Women," Journal of Comparative Economics, Elsevier, pages 709-731.
    14. Shunfeng Song, 2003. "Policy Issues of China's Urban Unemployment," Contemporary Economic Policy, Western Economic Association International, vol. 21(2), pages 258-269, April.
    15. Dong, Xiao-Yuan & MacPhail, Fiona & Bowles, Paul & Ho, Samuel P. S., 2004. "Gender Segmentation at Work in China's Privatized Rural Industry: Some Evidence from Shandong and Jiangsu," World Development, Elsevier, vol. 32(6), pages 979-998, June.
    16. Xin Meng & Junsen Zhang & Pak-Wai Liu, 2000. "Sectoral gender wage differentials and discrimination in the transitional Chinese economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(2), pages 331-352.
    17. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Trends in U.S. Wage Inequality: Re-Assessing the Revisionists," NBER Working Papers 11627, National Bureau of Economic Research, Inc.
    18. Vera A. Adamchik & Arjun S. Bedi, 2003. "Gender pay differentials during the transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 697-726, December.
    19. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    20. Melly, Blaise, 2005. "Decomposition of differences in distribution using quantile regression," Labour Economics, Elsevier, vol. 12(4), pages 577-590, August.
    21. De la Rica Goiricelaya, Sara & Dolado, Juan J. & Llorens, Vanessa, 2005. "Ceilings and Floors? Gender Wage Gaps by Education in Spain," DFAEII Working Papers 2005-01, University of the Basque Country - Department of Foundations of Economic Analysis II.
    22. Maurer-Fazio, Margaret & Hughes, James, 2002. "The Effects of Market Liberalization on the Relative Earnings of Chinese Women," Journal of Comparative Economics, Elsevier, pages 709-731.
    23. Susan E. Short & Feinian Chen & Barbara Entwisle & Zhai Fengying, 2002. "Maternal Work and Child Care in China: A Multi-Method Analysis," Population and Development Review, The Population Council, Inc., vol. 28(1), pages 31-57.
    24. 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.
    25. Liu, Amy Y.C., 2004. "Gender wage gap in Vietnam: 1993 to 1998," Journal of Comparative Economics, Elsevier, pages 586-596.
    26. Meng, Xin & Miller, Paul, 1995. "Occupational Segregation and Its Impact on Gender Wage Discrimination in China's Rural Industrial Sector," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 136-155, January.
    27. Jolliffe, Dean, 2002. "The Gender Wage Gap in Bulgaria: A Semiparametric Estimation of Discrimination," Journal of Comparative Economics, Elsevier, pages 276-295.
    28. 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.
    29. 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.
    30. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
    31. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," Harvard Institute of Economic Research Working Papers 2096, Harvard - Institute of Economic Research.
    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. Leonardo Becchetti & Riccardo Massari & Paolo Naticchioni, 2014. "The drivers of happiness inequality: suggestions for promoting social cohesion," Oxford Economic Papers, Oxford University Press, vol. 66(2), pages 419-442.
    2. repec:eee:wdevel:v:102:y:2018:i:c:p:331-344 is not listed on IDEAS
    3. Deshpande, Ashwini & Goel, Deepti & Khanna, Shantanu, 2018. "Bad Karma or Discrimination? Male–Female Wage Gaps Among Salaried Workers in India," World Development, Elsevier, vol. 102(C), pages 331-344.
    4. Tamar Khitarishvili, 2016. "Two tales of contraction: gender wage gap in Georgia before and after the 2008 crisis," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.
    5. Gustafsson, Björn & Li, Shi & Nivorozhkina, Ludmila & Wan, Haiyuan, 2015. "Yuan and Roubles: Comparing wage determination in urban China and Russia at the beginning of the new millennium," China Economic Review, Elsevier, vol. 35(C), pages 248-265.
    6. Ashwini Deshpande & Smriti Sharma, 2016. "Disadvantage and discrimination in self-employment: caste gaps in earnings in Indian small businesses," Small Business Economics, Springer, vol. 46(2), pages 325-346, February.
    7. Chi, Wei & Li, Bo, 2014. "Trends in China’s gender employment and pay gap: Estimating gender pay gaps with employment selection," Journal of Comparative Economics, Elsevier, pages 708-725.
    8. Atencio,Andrea & Posadas,Josefina, 2015. "Gender gap in pay in the Russian Federation : twenty years later, still a concern," Policy Research Working Paper Series 7407, The World Bank.
    9. Gail Pacheco & Chao Li & Bill Cochrane, 2017. "Empirical evidence of the gender pay gap in NZ," Working Papers 2017-05, Auckland University of Technology, Department of Economics.
    10. Ahmed, Salma & McGillivray, Mark, 2015. "Human Capital, Discrimination, and the Gender Wage Gap in Bangladesh," World Development, Elsevier, vol. 67(C), pages 506-524.
    11. Thanh Bui & Katsushi S. Imai, 2017. "Determinants of Rural-urban Inequality in Vietnam: Detailed Decomposition Analyses Based on Unconditional Quantile Regressions," Discussion Paper Series DP2017-01, Research Institute for Economics & Business Administration, Kobe University, revised Jun 2017.
    12. Gustafsson, Björn & LI, Shi & Sato, Hiroshi, 2014. "Data for studying earnings, the distribution of household income and poverty in China," China Economic Review, Elsevier, vol. 30(C), pages 419-431.
    13. Jan Kluge & Michael Weber, 2015. "Decomposing the German East-West wage gap," ifo Working Paper Series 205, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    14. Lam, Kevin C.K. & McGuinness, Paul B. & Vieito, João Paulo, 2013. "CEO gender, executive compensation and firm performance in Chinese‐listed enterprises," Pacific-Basin Finance Journal, Elsevier, pages 1136-1159.
    15. Kampon Adireksombat & Zheng Fang & Chris Sakellariou, 2016. "The Evolution Of Gender Wage Differentials In Thailand: 1991–2007 — An Application Of Unconditional Quantile Regression," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-30, December.
    16. Nix, Emily & Gamberoni, Elisa & Heath, Rachel, 2014. "Bridging the gap : identifying what is holding self-employed women back in Ghana, Rwanda, Tanzania, the Republic of Congo, and Uganda," Policy Research Working Paper Series 6946, The World Bank.
    17. Nordman, Christophe Jalil & Sarr, Leopold & Sharma, Smriti, 2015. "Cognitive, Non-Cognitive Skills and Gender Wage Gaps: Evidence from Linked Employer-Employee Data in Bangladesh," IZA Discussion Papers 9132, Institute for the Study of Labor (IZA).
    18. Giles, John & Wang, Dewen & Park, Albert, 2013. "Expanding social insurance coverage in urban China," Policy Research Working Paper Series 6497, The World Bank.
    19. Chi, Wei & Li, Bo, 2014. "Trends in China’s gender employment and pay gap: Estimating gender pay gaps with employment selection," Journal of Comparative Economics, Elsevier, pages 708-725.
    20. Liangshu Qi & Xiao-Yuan Dong, 2013. "Housework Burdens, Quality of Market Work Time, and Men’s and Women’s Earnings in China," Departmental Working Papers 2013-01, The University of Winnipeg, Department of Economics.
    21. HARA Hiromi, 2016. "Glass Ceilings or Sticky Floors? An analysis of the gender wage gap across the wage distribution in Japan," Discussion papers 16099, Research Institute of Economy, Trade and Industry (RIETI).
    22. Matt L. Huffman & Joe King & Malte Reichelt, 2017. "Equality for Whom? Organizational Policies and the Gender Gap across the German Earnings Distribution," ILR Review, Cornell University, ILR School, vol. 70(1), pages 16-41, January.
    23. Joanna Tyrowicz & Lucas van der Velde, 2017. "When the opportunity knocks: large structural shocks and gender wage gaps," GRAPE Working Papers 2, GRAPE Group for Research in Applied Economics.
    24. Tamar Khitarishvili, 2013. "Evaluating the Gender Wage Gap in Georgia, 2004 - 2011," Economics Working Paper Archive wp_768, Levy Economics Institute.
    25. Castro Campos, Bente & Ren, Yanjun & Petrick, Martin, 2016. "The impact of education on income inequality between ethnic minorities and Han in China," China Economic Review, Elsevier, vol. 41(C), pages 253-267.

    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:eee:jcecon:v:36:y:2008:i:2:p:243-263. 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: (Dana Niculescu). General contact details of provider: http://www.elsevier.com/locate/inca/622864 .

    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 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.

    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.