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An empirical study on underemployment in China: Determinants and effects on wages

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  • Ruoran Zhu
  • Guifu Chen

Abstract

Using the data from seven waves of China Health and Nutrition Survey questionnaires, this study investigates the factors associated with underemployment by measuring it using multidimensional indicators and the effect of underemployment on hourly wages in China. We find that male workers have a lower probability of underemployment than female workers. The underemployment rate of men has increased with age. As for women, the underemployment rate does not significantly change with age, considering corrections for selectivity bias. Furthermore, the effect of underemployment on the hourly wages of workers is robustly significant and negative for both males and females.

Suggested Citation

  • Ruoran Zhu & Guifu Chen, 2022. "An empirical study on underemployment in China: Determinants and effects on wages," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(6), pages 1110-1129, August.
    • Handle: RePEc:wly:jintdv:v:34:y:2022:i:6:p:1110-1129
    DOI: 10.1002/jid.3619
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