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Analysis Of Gender Wage Differential In China’S Urban Labor Market

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  • ALMAS HESHMATI

    (Department of Economics, Room k526, Sogang University, 35 Baekbeom-ro (Sinsu-dong #1), Mapo-gu, Seoul 121-742, Korea2Jönköping International Business School (JIBS), Jönköping University, Gjuterigatan 5, 553 18 Jönköping, Sweden)

  • BIWEI SU

    (Department of Economics, Room k526, Sogang University, 35 Baekbeom-ro (Sinsu-dong #1), Mapo-gu, Seoul 121-742, Korea2Jönköping International Business School (JIBS), Jönköping University, Gjuterigatan 5, 553 18 Jönköping, Sweden)

Abstract

This paper estimates the gender wage gap and its composition in China’s urban labor market. The traditional Blinder–Oaxaca (1973) decomposition method with different weighing systems is employed. To correct for potential selection bias caused by women’s labor force participation, we employ the Heckman’s two-step procedure to estimate the female wage function. A large proportion of the gender wage gap is unexplained by differences of productive characteristics of individuals. Even though women have higher level of education attainments on average, they receive lower wages than men. Both facts suggest a potential discrimination against women in China.

Suggested Citation

  • Almas Heshmati & Biwei Su, 2017. "Analysis Of Gender Wage Differential In China’S Urban Labor Market," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 423-445, June.
    • Handle: RePEc:wsi:serxxx:v:62:y:2017:i:02:n:s021759081550071x
    DOI: 10.1142/S021759081550071X
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    Cited by:

    1. Song, Yang & Zhou, Guangsu, 2019. "Inequality of opportunity and household education expenditures: Evidence from panel data in China," China Economic Review, Elsevier, vol. 55(C), pages 85-98.
    2. Theresa M. Greaney & Yao Li, 2017. "Examining Determinants of Foreign Wage Premiums in China," The World Economy, Wiley Blackwell, vol. 40(10), pages 2056-2077, October.
    3. Jane Golley & Yixiao Zhou & Meiyan Wang, 2019. "Inequality of Opportunity in China's Labor Earnings: The Gender Dimension," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 27(1), pages 28-50, January.
    4. Yijie Wang & Yanan Zhang, 2022. "“As Good as a Boy†But Still a Girl: Gender Equity Within the Context of China’s One-Child Policy," SAGE Open, , vol. 12(1), pages 21582440221, March.
    5. Cai, Lixin & Liu, Amy Y.C., 2015. "Wage determination and distribution in urban China and Vietnam: A comparative analysis," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 186-203.
    6. Theresa M. Greaney & Yao Li, 2013. "Trade, Foreign Direct Investment and Wage Inequality in China: A Heterogeneous Firms Approach," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 1-49.

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    More about this item

    Keywords

    Discrimination; wage gap; decomposition; selection bias; gender; China’s labor market;
    All these keywords.

    JEL classification:

    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

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