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Formal and Informal Employment in Urban China: Income Differentials

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

Author

Listed:
  • Guifu Chen

    (Xiamen University)

  • Shigeyuki Hamori

    (Kobe University)

Abstract

This study estimates the formal–informal employment hourly income differentials in urban China for the total population and by gender. The results indicate that differences between the characteristics of formal and informal employment account for a much higher percentage of the hourly income differential than discrimination in the labor market. In addition, we found that ignoring the sample selection bias results in an overestimation of the formal and informal male–female hourly income differentials and the degree of discrimination against the informal employment of women—and, conversely, an underestimation of the degree of discrimination against the formal employment of women.

Suggested Citation

  • Guifu Chen & Shigeyuki Hamori, 2014. "Formal and Informal Employment in Urban China: Income Differentials," SpringerBriefs in Economics, in: Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, edition 127, chapter 0, pages 77-96, Springer.
    • Handle: RePEc:spr:spbchp:978-3-642-41109-0_7
    DOI: 10.1007/978-3-642-41109-0_7
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    Cited by:

    1. Mohamed Amara, 2016. "The linkages between formal and informal employment growth in Tunisia: a spatial simultaneous equations approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 203-227, January.

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