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Occupational segregation and the gender earnings gap in China: devils in the details

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  • Lin Xiu
  • Morley Gunderson

Abstract

Purpose - – The purpose of this paper is to analyze the gender earnings gap in China with a focus on the role of differences in the occupational distribution of males and females. Design/methodology/approach - – The authors use a procedure to model occupational attainments and decompose differences in earnings into an inter-occupational portion due to differences in the occupational distribution between males and females, and an intra-occupational portion due to differences in pay. The analysis is based on Chinese census data. Findings - – The authors find that the male-female pay gap is virtually completely explained by wage discrimination defined as females being paid less than males within the occupation groups based on six broad occupations. Occupational segregation explains virtually none of the overall male-female pay gap, and in fact the “segregation” slightly favors women. However, the picture changes substantially when the analysis is conducted at the more disaggregate sub-occupation level within each of the six broad groups. Wage discrimination remains the prominent contributor to the pay gap across the disaggregated sub-occupations in each of the broad occupations. But there is considerable heterogeneity in the effect of occupational discrimination within the sub-occupations within the different broad occupational groups. Social implications - – When females have the same occupation-determining characteristics as men, they are in lower paying sub-occupations within the professional group and to a lesser extent within manufacturing and operations jobs. There is considerable heterogeneity in the effect of occupational discrimination within the sub-occupations in the different broad occupational groups. Originality/value - – The paper systematically examines the degree to which the gender earnings gap in China is due to the differences in occupational distributions of males and females, highlighting that the conventional Blinder-Oaxaca decompositions can under- or over- estimate the unexplained portion of the gender pay gap by controlling or not controlling for differences in the occupational distribution of males and females. The paper also shows that previous studies that have examined occupational segregation across aggregate occupational groups can mask important differences in the effect of occupational discrimination within the sub-occupations in the different broad occupational groups.

Suggested Citation

  • Lin Xiu & Morley Gunderson, 2015. "Occupational segregation and the gender earnings gap in China: devils in the details," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(5), pages 711-732, August.
    • Handle: RePEc:eme:ijmpps:v:36:y:2015:i:5:p:711-732
    DOI: 10.1108/IJM-03-2013-0047
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    References listed on IDEAS

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    1. Plasman, Robert & Sissoko, Salimata, 2004. "Comparing Apples with Oranges: Revisiting the Gender Wage Gap in an International Perspective," IZA Discussion Papers 1449, Institute of Labor Economics (IZA).
    2. Michael P. Kidd, 1993. "Sex Discrimination and Occupational Segregation in the Australian Labour Market," The Economic Record, The Economic Society of Australia, vol. 69(1), pages 44-55, March.
    3. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-474, June.
    4. Gunderson, Morley, 1989. "Male-Female Wage Differentials and Policy Responses," Journal of Economic Literature, American Economic Association, vol. 27(1), pages 46-72, March.
    5. Bowles, Hannah Riley & Babcock, Linda & Lai, Lei, 2007. "Social incentives for gender differences in the propensity to initiate negotiations: Sometimes it does hurt to ask," Organizational Behavior and Human Decision Processes, Elsevier, vol. 103(1), pages 84-103, May.
    6. Blau Francine D & Kahn Lawrence M, 2007. "The Gender Pay Gap," The Economists' Voice, De Gruyter, vol. 4(4), pages 1-6, June.
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    Cited by:

    1. Ben Westmore, 2017. "Sharing the Benefits of China’s Growth by Providing Opportunities to All," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-33, October.
    2. Lin Xiu & Morley Gunderson, 2021. "Does an Entrepreneurial Career Pay for Women in China?," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 167-190, March.
    3. Asadullah, M. Niaz & Xiao, Saizi, 2020. "The changing pattern of wage returns to education in post-reform China," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 137-148.
    4. Qiao Wang, 2023. "Does the Chinese labour force make sufficient efforts? Empirical evidence using non‐parametric analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 3262-3280, July.

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