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Wage Differentials and Ownership Structure in Chinese Enterprises

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  • Yu CHEN

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  • Sylvie DEMURGER
  • Martin FOURNIER

Abstract

This paper analyses the determinants of wage differentials among different ownership enterprises in urban China in 1955,using an extended version of Oaxaca-Blinder decomposition methods. We find higher wages in state-owned and foreign-invested enterprises compared to urban collectives, but no significant difference in hourly wages between central state-owned and foreign-invested enterprises. Moreover, we find strong evidence for segmentation on the Chinese labor market, the conjunction of segmentation and differences in hours worked being the major determinant of observed differences. We also show that, although foreign-invested enterprises allow for higher global annual income, it is at the cost of longer working hours.

Suggested Citation

  • Yu CHEN & Sylvie DEMURGER & Martin FOURNIER, 2003. "Wage Differentials and Ownership Structure in Chinese Enterprises," Working Papers 200320, CERDI.
  • Handle: RePEc:cdi:wpaper:444
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    Cited by:

    1. Yi CHEN & Sylvie DEMURGER & Martin FOURNIER, 2004. "Différentiels salariaux, segmentation et discrimination à l’égard des femmes sur le marché du travail chinois," Working Papers 200426, CERDI.
    2. Guerineau, Samuel & Guillamont Jeanneney, Sylviane, 2005. "Deflation in China," China Economic Review, Elsevier, vol. 16(4), pages 336-363.
    3. Ayako Kondo & Dongshu Ou, 2010. "In Search of a Better Life: The Occupational Attainment of Rural and Urban Migrants in China," ISER Discussion Paper 0793, Institute of Social and Economic Research, Osaka University.
    4. Grigoriou, Christopher & Guillaumont, Patrick & Yang, Wenyan, 2005. "Child mortality under Chinese reforms," China Economic Review, Elsevier, vol. 16(4), pages 441-464.

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