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Wage curve for urban China: a panel data approach

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  • Zhongmin Wu

Abstract

The panel data evidence in this article shows that the wage curve does not exist in China when utilizing the provincial unemployment rate. However, the wage curve exists when utilizing the provincial youth unemployment rate. Youth unemployment data are more reliable in China, as they are not distorted by the exclusion of significant numbers of adult laid off workers from the more familiar unemployment statistics. It is also found that the semi-log function is a good approximation for urban wage curve of China. The wage unemployment relationship becomes more negative when utilizing fixed effects and random effects models.

Suggested Citation

  • Zhongmin Wu, 2004. "Wage curve for urban China: a panel data approach," Applied Economics Letters, Taylor & Francis Journals, vol. 11(7), pages 425-428.
  • Handle: RePEc:taf:apeclt:v:11:y:2004:i:7:p:425-428 DOI: 10.1080/1350485042000189523
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    References listed on IDEAS

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    1. David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x, January.
    2. Bratsberg, Bernt & Turunen, Jarkko, 1996. "Wage curve evidence from panel data," Economics Letters, Elsevier, vol. 51(3), pages 345-353, June.
    3. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
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    Cited by:

    1. Roberto Bande Ramudo & Melchor Fernández Fernández & Víctor Montuenga Gómez, 2011. "Wage flexibility and local labour markets: homogeneity of the wage curve in Spain," Documentos de trabajo - Analise Economica 0044, IDEGA - Instituto Universitario de Estudios e Desenvolvemento de Galicia.
    2. Kang, Lili & Peng, Fei, 2012. "Real wage cyclicality in urban China," Economics Letters, Elsevier, vol. 115(2), pages 141-143.
    3. David G. Blanchflower & Andrew J. Oswald, 2005. "The Wage Curve Reloaded," NBER Working Papers 11338, National Bureau of Economic Research, Inc.
    4. Appleton, Simon & Song, Lina & Xia, Qingjie, 2005. "Has China crossed the river? The evolution of wage structure in urban China during reform and retrenchment," Journal of Comparative Economics, Elsevier, pages 644-663.
    5. Johnes, Geraint, 2007. "The wage curve revisited: Estimates from a UK panel," Economics Letters, Elsevier, vol. 94(3), pages 414-420, March.
    6. repec:lan:wpaper:4815 is not listed on IDEAS
    7. Lili Kang & Fei Peng, 2017. "Wage flexibility in the Chinese labour market, 1989–2009," Regional Studies, Taylor & Francis Journals, vol. 51(4), pages 616-628, April.
    8. Freeman, Richard B., 2010. "Labor Regulations, Unions, and Social Protection in Developing Countries," Handbook of Development Economics, Elsevier.
    9. repec:lan:wpaper:4511 is not listed on IDEAS
    10. repec:lan:wpaper:4383 is not listed on IDEAS

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