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Bivariate Probit Analysis of the Differences Between Male and Female Formal Employment in Urban China

In: Rural Labor Migration, Discrimination, and the New Dual Labor Market in China

Author

Listed:
  • Guifu Chen

    (Xiamen University)

  • Shigeyuki Hamori

    (Kobe University)

Abstract

Using the 2004 and 2006 pooling data of the China Health and Nutrition Survey (CHNS) questionnaire, this chapter studies the differences between male and female employment in urban China, taking into account the interdependence of the decisions of women to participate in the workforce and the formal hiring choices of organizations. We probe this interdependence with a bivariate probit model. When certain unobserved factors that may influence both of these decisions are ignored, the estimated coefficients of the equation corresponding to the formal hiring of female employees are inconsistent. However, when results are obtained through a censored bivariate probit of an all-female sample, the conditional formal employment probability of women is about 3 % lower than the unconditional probability acquired through a univariate probit of a sample of labor market participants. Moreover, the findings show that the formal employment probability differential (between males and females) because of discrimination will be overestimated in the case of a univariate probit model.

Suggested Citation

  • Guifu Chen & Shigeyuki Hamori, 2014. "Bivariate Probit Analysis of the Differences Between Male and Female Formal Employment in Urban China," SpringerBriefs in Economics, in: Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, edition 127, chapter 0, pages 65-76, Springer.
  • Handle: RePEc:spr:spbchp:978-3-642-41109-0_6
    DOI: 10.1007/978-3-642-41109-0_6
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    References listed on IDEAS

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    1. Meng, Chun-Lo & Schmidt, Peter, 1985. "On the Cost of Partial Observability in the Bivariate Probit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 71-85, February.
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    4. Guifu Chen & Shigeyuki Hamori, 2014. "Do Chinese Employers Discriminate Against Females When Hiring Employees?," SpringerBriefs in Economics, in: Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, edition 127, chapter 0, pages 39-51, Springer.
    5. Madhu Mohanty, 1998. "Do US employers discriminate against females when hiring their employees?," Applied Economics, Taylor & Francis Journals, vol. 30(11), pages 1471-1482.
    6. Madhu Mohanty, 2002. "A bivariate probit approach to the determination of employment: a study of teen employment differentials in Los Angeles County," Applied Economics, Taylor & Francis Journals, vol. 34(2), pages 143-156.
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    10. repec:ebl:ecbull:v:10:y:2008:i:14:p:1-17 is not listed on IDEAS
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