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The Supply and Demand Factors Behind the Relative Earnings Increases in Urban China at the Turn of the 21st Century

  • Hang Gao

    ()

    (Department of Economics, University of Alberta, 7-29 HM Tory, Edmonton, Alberta, Canada T6G 2H4.)

  • Joseph Marchand

    ()

    (Department of Economics, University of Alberta, 7-29 HM Tory, Edmonton, Alberta, Canada T6G 2H4.)

  • Tao Song

    ()

    (Department of Economics, University of Alberta, 7-29 HM Tory, Edmonton, Alberta, Canada T6G 2H4.)

All of the demographic and skill groups in China's urban labor market received increases in their real earnings from the mid-1990s to the early 2000s. This paper analyzes these relative earnings increases with respect to the relative supply and demand changes for each of these imperfectly substitutable labor inputs. The relative movements of both supply and demand were consistent with the relative earnings increases across experience groups, but only the relative demand movements were consistent across education groups, and neither of the movements could help explain the gender differences.

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Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 55 (2013)
Issue (Month): 1 (March)
Pages: 121-143

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Handle: RePEc:pal:compes:v:55:y:2013:i:1:p:121-143
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  1. Lam, Kit-Chun & Liu, Pak-Wai, 2011. "Increasing dispersion of skills and rising earnings inequality," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 82-91, March.
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  7. J. David Brown & John Earle & Almos Telegdy, 2005. "The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine," CERT Discussion Papers 0508, Centre for Economic Reform and Transformation, Heriot Watt University.
  8. Li, Haizheng & Zax, Jeffrey S., 2003. "Labor supply in urban China," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 795-817, December.
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  10. Dong, Xiao-yuan & Xu, Lixin Colin, 2009. "Labor restructuring in China: Toward a functioning labor market," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 287-305, June.
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