Migrants as second-class workers in urban China? A decomposition analysis
In urban China, urban resident annual earnings are 1.3 times larger than long-term rural migrant earnings as observed in a nationally representative sample in 2002. Using microsimulation, we decompose this difference into four sources, with particular attention to path-dependence and statistical distribution of the estimated effects: (1) different allocation to sectors that pay different wages (sectoral effect); (2) hourly wage disparities across the two populations within sectors (wage effect); (3) different working times within sectors (working time effect); and (4) different population structures (population effect). Although sector allocation is extremely contrasted, with very few migrants in the public sector and very few urban residents working as self-employed, this has no clear impact on earnings differentials, because the sectoral effect is not robust to the path followed for the decomposition. The second main finding is that the population effect is robust and significantly more important than wage or working time effects. This implies that the main source of disparity between the two populations is pre-market (education opportunities) rather than on-market.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Loren Brandt & Carsten Holz, 2005.
"Spatial Price Differences in China: Estimates and Implications,"
- Brandt, Loren & Holz, Carsten A, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 43-86, October.
- Loren Brandt & Carsten A. Holz, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 43-86.
- Loren BRANDT & Carsten A HOLZ, 2005. "Spatial Price Differences in China: Estimates and Implications," Development and Comp Systems 0504010, EconWPA.
- Knight, J & Song, L & Huaibin, J, 1997.
"Chinese Rural Migrants in Urban Enterprises : Three Perspectives,"
Economics Series Working Papers
99190, University of Oxford, Department of Economics.
- John Knight & Lina Song & Jia Huaibin, 1999. "Chinese rural migrants in urban enterprises: Three perspectives," Journal of Development Studies, Taylor & Francis Journals, vol. 35(3), pages 73-104.
- de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, vol. 88(1), pages 19-31, January.
- Gustafsson, Bjorn & Li, Shi, 2004. "Expenditures on education and health care and poverty in rural China," China Economic Review, Elsevier, vol. 15(3), pages 292-301.
- Knight, John & Song, Lina, 2006.
"Towards a Labour Market in China,"
Oxford University Press, number 9780199215553, December.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
- Alan de Brauw & John Giles, 2005.
"Migrant Opportunity and the Educational Attainment of Youth in Rural China,"
Department of Economics Working Papers
2005-05, Department of Economics, Williams College.
- de Brauw, Alan & Giles, John T., 2006. "Migrant Opportunity and the Educational Attainment of Youth in Rural China," IZA Discussion Papers 2326, Institute for the Study of Labor (IZA).
- Giles,John T. & De Brauw,Alan, 2008. "Migrant opportunity and the educational attainment of youth in rural China," Policy Research Working Paper Series 4526, The World Bank.
- Zhong Zhao, 2005. "Migration, Labor Market Flexibility, and Wage Determination in China: A Review," Labor and Demography 0507009, EconWPA.
- John Knight & Linda Yueh & Linda Y. Yueh, 2003.
"Job Mobility of Residents and Migrants in Urban China,"
Economics Series Working Papers
163, University of Oxford, Department of Economics.
- Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
- David Neumark, 1988.
"Employers' Discriminatory Behavior and the Estimation of Wage Discrimination,"
Journal of Human Resources,
University of Wisconsin Press, vol. 23(3), pages 279-295.
- David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
- Sylvie Démurger & Martin Fournier & Chen Yi, 2005.
"Earnings differentials and ownership structure in Chinese enterprises,"
- Chen, Yi & Demurger, Sylvie & Fournier, Martin, 2005. "Earnings Differentials and Ownership Structure in Chinese Enterprises," Economic Development and Cultural Change, University of Chicago Press, vol. 53(4), pages 933-58, July.
- Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 15(1), pages 3-28.
- Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
- Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-82, July.
- Simon Appleton & John Knight & Lina Song & Qingjie Xia, 2004. "Contrasting paradigms: segmentation and competitiveness in the formation of the chinese labour market," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(3), pages 185-205.
- Anqing Shi & Shuming Bao, 2007. "Migration, Education and Rural Development: Evidence from China 2000 Population Census Data," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 5(2), pages 163-177.
- Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September.
- John Knight & Linda Yueh, 2004. "Urban Insiders versus Rural Outsiders: Complementarity or Competition in China`s Urban Labour Market?," Economics Series Working Papers 217, University of Oxford, Department of Economics.
- Liu, Pak-Wai & Zhang, Junsen & Chong, Shu-Chuen, 2004. "Occupational segregation and wage differentials between natives and immigrants: evidence from Hong Kong," Journal of Development Economics, Elsevier, vol. 73(1), pages 395-413, February.
When requesting a correction, please mention this item's handle: RePEc:eee:jcecon:v:37:y:2009:i:4:p:610-628. 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: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.