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Anatomy of the Wage Gap Between Local and Migrant Workers in Urban Areas of the People’s Republic of China

Author

Listed:
  • SHU CAI

    (Institute for Economic and Social Research, Jinan University, People’s Republic of China)

  • XINGJIAN ZHANG

    (Rotman School of Management, University of Toronto, Canada)

Abstract

This paper examines the wage differentials between local and migrant workers in urban areas of the People’s Republic of China. Using unique data from a survey that was designed to be representative of migrants and local residents, the study finds that, without considering differences in the distribution of job attainment, the majority of the wage gap can be explained by differences in personal characteristics. However, an examination of labor market segmentation indicates that a significant component of the cross-group wage differentials due to segmentation in jobs with different work times or tenures is unexplained by productivity-related characteristics, implying possible discrimination against migrant workers along these aspects.

Suggested Citation

  • Shu Cai & Xingjian Zhang, 2025. "Anatomy of the Wage Gap Between Local and Migrant Workers in Urban Areas of the People’s Republic of China," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 42(02), pages 147-183, June.
    • Handle: RePEc:wsi:adrxxx:v:42:y:2025:i:02:n:s0116110525500143
    DOI: 10.1142/S0116110525500143
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    More about this item

    Keywords

    discrimination; labor market; local residents; migrant; wage gap;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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