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Experience, tenure and gender wage difference: evidence from China

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  • Dan Qu
  • Saisai Guo
  • Lafang Wang

Abstract

This paper studies the returns to general labour market experience and firm-specific tenure, using data from China. Specifically, it focuses on explaining the gender wage difference from the perspective of general human capital and specific human capital. It applies the Heckman maximum likelihood estimator and Topel two-step estimation methodology to correct sample selection bias and individual heterogeneity. After correcting the errors, the authors find that returns to experience are higher for men than women, especially for married men and women. Furthermore, the return to tenure is higher than that to general experience. For men, the former is about 6% higher than the latter. But for women, tenure contributes 7–8% more to the wage growth than experience. The return of general experience mainly contributes to gender wage difference in China. Empirical results also show that the cross section analysis downward biases the returns to potential experience and a simple Topel-2S estimation in the panel study upward biases the returns.

Suggested Citation

  • Dan Qu & Saisai Guo & Lafang Wang, 2019. "Experience, tenure and gender wage difference: evidence from China," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 32(1), pages 1169-1184, January.
    • Handle: RePEc:taf:reroxx:v:32:y:2019:i:1:p:1169-1184
    DOI: 10.1080/1331677X.2019.1592695
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    Cited by:

    1. Jaivir Singh & Deb Kusum Das & Kumar Abhishek, 2022. "Specific Human Capital and Skills in Indian Manufacturing: Observed Wage and Tenure Relationships from a Worker Survey," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(4), pages 1007-1028, December.

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