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

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  • 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.)

Abstract

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.

Suggested Citation

  • Hang Gao & Joseph Marchand & Tao Song, 2013. "The Supply and Demand Factors Behind the Relative Earnings Increases in Urban China at the Turn of the 21st Century," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(1), pages 121-143, March.
  • Handle: RePEc:pal:compes:v:55:y:2013:i:1:p:121-143
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    References listed on IDEAS

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    Cited by:

    1. Dammert, Ana C. & Ural Marchand, Beyza & Wan, Chi, 2013. "Gender Wage-Productivity Differentials and Global Integration in China," IZA Discussion Papers 7159, Institute for the Study of Labor (IZA).
    2. Ana C. Dammert & Beyza Ural Marchand, 2015. "Privatization In China: Technology And Gender In The Manufacturing Sector," Contemporary Economic Policy, Western Economic Association International, vol. 33(2), pages 250-264, April.

    More about this item

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P31 - Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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