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Trends in China’s gender employment and pay gap: Estimating gender pay gaps with employment selection

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  • Chi, Wei
  • Li, Bo

Abstract

In contrast to the United States and European countries, China has witnessed a widening gender pay gap in the past two decades. Nevertheless, the size of the gender pay gap could still be underestimated as a result of not accounting for the low-wage women who have dropped out of the labor force. As shown by a large and representative set of household survey data in China, since the 1980s the female employment rate has been falling and the gap between male and female employment rates has been increasing. We estimate the gap size using Heckman’s selection-correction model and bounds of the raw gender pay gap, taking into consideration the different male and female employment rates in China. The results support the view that the gender pay gap estimate is biased without taking into account employment selectivity.

Suggested Citation

  • 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, vol. 42(3), pages 708-725.
  • Handle: RePEc:eee:jcecon:v:42:y:2014:i:3:p:708-725
    DOI: 10.1016/j.jce.2013.06.008
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    Cited by:

    1. Hare, Denise, 2016. "What accounts for the decline in labor force participation among married women in urban China, 1991–2011?," China Economic Review, Elsevier, vol. 38(C), pages 251-266.
    2. Asadullah, Niaz & Wahhaj, Zaki, 2016. "Missing from the Market: Purdah Norm and Women's Paid Work Participation in Bangladesh," IZA Discussion Papers 10463, Institute for the Study of Labor (IZA).
    3. repec:spr:chfecr:v:5:y:2017:i:1:d:10.1186_s40589-017-0046-2 is not listed on IDEAS
    4. Hazarika, Bhabesh, 2017. "Decomposition of Gender Income Gap in Rural Informal Micro-enterprises: An Unconditional Quantile Approach in the Handloom Industry," Working Papers 17/216, National Institute of Public Finance and Policy.

    More about this item

    Keywords

    Gender pay gap; Gender employment gap; Heckman selection correction; Bounds; Instrumental variable;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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