IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v12y2022i2p21582440221099290.html
   My bibliography  Save this article

The impact of Internet use on labor wage distortions: Empirical Evidence From China

Author

Listed:
  • Xin Zhao
  • Yishuo Jiao
  • Dan Wu

Abstract

With the general growth of human capital, it is urgent to reduce and eliminate the distortion of labor factor allocation, which may cause the loss of productivity. This study focuses on whether internet use has a moderating effect on labor wage distortion and its mechanism. Based on the national China Family Panel Studies survey in 2016, the study uses a stochastic frontier approach. The results show that the degree of average wage distortion in the labor market ranged from 45.02% to 55.24%, while internet use alleviated wage distortion by 3.76% on the whole. This reduction was maintained after treatments for endogeneity and tests for robustness. Internet use effectively reduced wage distortion through educational matching, employment security, and job expectation.

Suggested Citation

  • Xin Zhao & Yishuo Jiao & Dan Wu, 2022. "The impact of Internet use on labor wage distortions: Empirical Evidence From China," SAGE Open, , vol. 12(2), pages 21582440221, May.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:2:p:21582440221099290
    DOI: 10.1177/21582440221099290
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440221099290
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440221099290?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Pierre Cahuc & Fabien Postel-Vinay & Jean-Marc Robin, 2006. "Wage bargaining with on-the-job search: theory and evidence," SciencePo Working papers Main hal-03471856, HAL.
    2. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    3. Pierre Cahuc & Fabien Postel-Vinay & Jean-Marc Robin, 2006. "Wage Bargaining with On-the-Job Search: Theory and Evidence," Econometrica, Econometric Society, vol. 74(2), pages 323-364, March.
    4. Brown, James N, 1989. "Why Do Wages Increase with Tenure? On-the-Job Training and Life-Cycle Wage Growth Observed within Firms," American Economic Review, American Economic Association, vol. 79(5), pages 971-991, December.
    5. Fabien Postel-Vinay & Jean-Marc Robin, 2004. "To Match or Not to Match? Optimal Wage Policy With Endogenous Worker Search Intensity," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(2), pages 297-330, April.
    6. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    7. repec:hal:spmain:info:hdl:2441/dc0ckec3fcb29ms9850c12h1p is not listed on IDEAS
    8. Pierre Cahuc & Fabien Postel-Vinay & Jean-Marc Robin, 2006. "Wage bargaining with on-the-job search: theory and evidence," Post-Print hal-03471856, HAL.
    9. Peter Kuhn & Hani Mansour, 2014. "Is Internet Job Search Still Ineffective?," Economic Journal, Royal Economic Society, vol. 124(581), pages 1213-1233, December.
    10. Peter Kuhn, 2014. "The internet as a labor market matchmaker," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-18, May.
    11. Pierre Cahuc & Fabien Postel-Vinay & Jean-Marc Robin, 2006. "Wage bargaining with on-the-job search: theory and evidence," SciencePo Working papers hal-03471856, HAL.
    12. Subal Kumbhakar & Christopher Parmeter, 2009. "The effects of match uncertainty and bargaining on labor market outcomes: evidence from firm and worker specific estimates," Journal of Productivity Analysis, Springer, vol. 31(1), pages 1-14, February.
    13. Fabien Postel-Vinay & Jean-Marc Robin, 2004. "To match or not to match? Optimal wage policy with endogenous worker search intensity," SciencePo Working papers Main hal-03587620, HAL.
    14. repec:iza:izawol:journl:y:2014:p:18 is not listed on IDEAS
    15. Shintaro Yamaguchi, 2010. "Job Search, Bargaining, and Wage Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 28(3), pages 595-631, July.
    16. Seamus McGuinness & Adele Bergin & Adele Whelan, 2018. "Overeducation in Europe: trends, convergence, and drivers," Oxford Economic Papers, Oxford University Press, vol. 70(4), pages 994-1015.
    17. Constantin Mang, 2012. "Online Job Search and Matching Quality," ifo Working Paper Series 147, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    18. Fabien Postel-Vinay & Jean-Marc Robin, 2004. "To match or not to match? Optimal wage policy with endogenous worker search intensity," Post-Print hal-03587620, HAL.
    19. repec:eme:rlec11:s0147-9121(05)24002-5 is not listed on IDEAS
    20. Majumdar, Sumit K., 2014. "Technology and wages: Why firms invest and what happens," Technology in Society, Elsevier, vol. 39(C), pages 44-54.
    21. Ross, Catherine E. & Mirowsky, John, 2006. "Sex differences in the effect of education on depression: Resource multiplication or resource substitution?," Social Science & Medicine, Elsevier, vol. 63(5), pages 1400-1413, September.
    22. Fabien Postel-Vinay & Jean-Marc Robin, 2004. "To match or not to match? Optimal wage policy with endogenous worker search intensity," SciencePo Working papers hal-03587620, HAL.
    23. A. Amarender Reddy & Surabhi Mittal & Namrata Singha Roy & Sanghamitra Kanjilal-Bhaduri, 2021. "Time Allocation between Paid and Unpaid Work among Men and Women: An Empirical Study of Indian Villages," Sustainability, MDPI, vol. 13(5), pages 1-17, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cynthia Doniger, 2023. "Wage Dispersion with Heterogeneous Wage Contracts," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 51, pages 138-160, December.
    2. Di Addario, Sabrina & Kline, Patrick & Saggio, Raffaele & Sølvsten, Mikkel, 2023. "It ain’t where you’re from, it’s where you’re at: Hiring origins, firm heterogeneity, and wages," Journal of Econometrics, Elsevier, vol. 233(2), pages 340-374.
    3. Etienne Lale, 2022. "Search and Multiple Jobholding," Working Papers 22-07, Chair in macroeconomics and forecasting, University of Quebec in Montreal's School of Management.
    4. Etienne Lalé, 2019. "Search and Multiple Jobholding," Upjohn Working Papers 19-305, W.E. Upjohn Institute for Employment Research.
    5. Fanqiang Meng & Zhihui Liu & Hao Lin & Miraj Ahmed Bhuiyan, 2023. "The impact of labor mobility with fellow townsmen on the wages of rural migrants: evidence from China," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    6. Sarah Le Duigou, 2020. "Endogenous Unemployment Benefits in an Equilibrium Job Search Model over the Life-Cycle," Post-Print hal-03884234, HAL.
    7. Ekinci, Emre, 2019. "Discretionary bonuses and turnover," Labour Economics, Elsevier, vol. 60(C), pages 30-49.
    8. Bobba, Matteo & Flabbi, Luca & Levy, Santiago & Tejada, Mauricio, 2021. "Labor market search, informality, and on-the-job human capital accumulation," Journal of Econometrics, Elsevier, vol. 223(2), pages 433-453.
    9. Jesper Bagger & Fran?ois Fontaine & Fabien Postel-Vinay & Jean-Marc Robin, 2014. "Tenure, Experience, Human Capital, and Wages: A Tractable Equilibrium Search Model of Wage Dynamics," American Economic Review, American Economic Association, vol. 104(6), pages 1551-1596, June.
    10. Marotzke, Petra, 2013. "Job Search and the Age-Inequality Profile," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 80007, Verein für Socialpolitik / German Economic Association.
    11. repec:hal:spmain:info:hdl:2441/7rep5mp5ij95l94ec64n5tdclp is not listed on IDEAS
    12. Arellano-Bover, Jaime & Saltiel, Fernando, 2021. "Differences in On-the-Job Learning across Firms," IZA Discussion Papers 14473, Institute of Labor Economics (IZA).
    13. Chen, Yu & Doyle, Matthew & Gonzalez, Francisco M., 2024. "Wages as signals of worker mobility," Theoretical Economics, Econometric Society, vol. 19(1), January.
    14. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09j0045h4bh is not listed on IDEAS
    15. Rasmus Lentz, 2014. "Optimal Employment Contracts with Hidden Search," NBER Working Papers 19988, National Bureau of Economic Research, Inc.
    16. Wang, Wei & Yang, Haoxi & Wang, Xi, 2023. "Financial development and wage income: Evidence from the global football market," Journal of Banking & Finance, Elsevier, vol. 149(C).
    17. Jeremy Lise & Costas Meghir & Jean-Marc Robin, 2016. "Matching, Sorting and Wages," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 19, pages 63-87, January.
    18. Christopher Taber & Rune Vejlin, 2020. "Estimation of a Roy/Search/Compensating Differential Model of the Labor Market," Econometrica, Econometric Society, vol. 88(3), pages 1031-1069, May.
    19. David Card & Ana Rute Cardoso & Joerg Heining & Patrick Kline, 2018. "Firms and Labor Market Inequality: Evidence and Some Theory," Journal of Labor Economics, University of Chicago Press, vol. 36(S1), pages 13-70.
    20. Arnaud Chéron & Anthony Terriau, 2023. "On-The-Job Search, Life-cycle Training, and the Role of Transfer Fees," TEPP Working Paper 2023-06, TEPP.
    21. Morchio, Iacopo & Moser, Christian, 2018. "The Gender Pay Gap: Micro Sources and Macro Consequences," MPRA Paper 99276, University Library of Munich, Germany, revised 24 Mar 2020.
    22. Juan Carluccio & Denis Fougère & Erwan Gautier, 2015. "Trade, Wages and Collective Bargaining: Evidence from France," Economic Journal, Royal Economic Society, vol. 0(584), pages 803-837, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:12:y:2022:i:2:p:21582440221099290. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.