Migrants as second-class workers in urban China? A decomposition analysis
In urban China, urban resident annual earnings are 1.3 times larger than long term rural migrant earnings as observed in a nationally representative sample in 2002. Using microsimulation, we decompose this difference into four sources, with particular attention to path dependence and statistical distribution of the estimated effects: (1) different allocation to sectors that pay different wages (sectoral effect); (2) hourly wage disparities across the two populations within sectors (wage effect); (3) different working times within sectors (hours effect); (4) different population structures (population effect). Although sector allocation is extremely contrasted, with very few migrants in the public sector and very few urban residents working as self-employed, the sectoral effect is not robust to the path followed for the decomposition. We show that the migrant population has a comparative advantage in the private sector: increasing its participation into the public sector does not necessarily improve its average earnings. The opposite holds for the urban residents. The second main finding is that population effect is significantly more important than wage or hours effects. This implies that the main source of disparity is pre-market (education opportunities) rather than on-market.
|Date of creation:||2008|
|Date of revision:|
|Publication status:||Published in Working paper GATE 2008-08. 2008|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00269119|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giles,John T. & De Brauw,Alan, 2008.
"Migrant opportunity and the educational attainment of youth in rural China,"
Policy Research Working Paper Series
4526, The World Bank.
- Alan de Brauw & John Giles, 2005. "Migrant Opportunity and the Educational Attainment of Youth in Rural China," Department of Economics Working Papers 2005-05, Department of Economics, Williams College.
- de Brauw, Alan & Giles, John T., 2006. "Migrant Opportunity and the Educational Attainment of Youth in Rural China," IZA Discussion Papers 2326, Institute for the Study of Labor (IZA).
- Loren BRANDT & Carsten A HOLZ, 2005.
"Spatial Price Differences in China: Estimates and Implications,"
Development and Comp Systems
- Loren Brandt & Carsten A. Holz, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55, pages 43-86.
- Brandt, Loren & Holz, Carsten A, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 43-86, October.
- Loren Brandt & Carsten Holz, 2005. "Spatial Price Differences in China: Estimates and Implications," Microeconomics 0512001, EconWPA.
- Simon Appleton & John Knight & Lina Song & Qingjie Xia, 2004. "Contrasting paradigms: segmentation and competitiveness in the formation of the chinese labour market," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(3), pages 185-205.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
- Knight, J & Song, L & Huaibin, J, 1997.
"Chinese Rural Migrants in Urban Enterprises : Three Perspectives,"
Economics Series Working Papers
99190, University of Oxford, Department of Economics.
- John Knight & Lina Song & Jia Huaibin, 1999. "Chinese rural migrants in urban enterprises: Three perspectives," Journal of Development Studies, Taylor & Francis Journals, vol. 35(3), pages 73-104.
- Liu, Pak-Wai & Zhang, Junsen & Chong, Shu-Chuen, 2004. "Occupational segregation and wage differentials between natives and immigrants: evidence from Hong Kong," Journal of Development Economics, Elsevier, vol. 73(1), pages 395-413, February.
- Knight, John & Yueh, Linda, 2004.
"Job mobility of residents and migrants in urban China,"
Journal of Comparative Economics,
Elsevier, vol. 32(4), pages 637-660, December.
- John Knight & Linda Yueh & Linda Y. Yueh, 2003. "Job Mobility of Residents and Migrants in Urban China," Economics Series Working Papers 163, University of Oxford, Department of Economics.
- Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 15(1), pages 3-28.
- Zhong Zhao, 2005. "Migration, Labor Market Flexibility, and Wage Determination in China: A Review," Labor and Demography 0507009, EconWPA.
- Knight, John & Song, Lina, 1995.
"Towards a Labour Market in China,"
Oxford Review of Economic Policy,
Oxford University Press, vol. 11(4), pages 97-117, Winter.
- Anqing Shi & Shuming Bao, 2007. "Migration, Education and Rural Development: Evidence from China 2000 Population Census Data," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 5(2), pages 163-177.
- Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
- Chen, Yi & Demurger, Sylvie & Fournier, Martin, 2005.
"Earnings Differentials and Ownership Structure in Chinese Enterprises,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 53(4), pages 933-58, July.
- Sylvie Démurger & Martin Fournier & Chen Yi, 2005. "Earnings differentials and ownership structure in Chinese enterprises," Post-Print halshs-00354962, HAL.
- Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September.
- Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-82, July.
- John Knight & Linda Yueh, 2004. "Urban Insiders versus Rural Outsiders: Complementarity or Competition in China`s Urban Labour Market?," Economics Series Working Papers 217, University of Oxford, Department of Economics.
- David Neumark, 1987.
"Employers' discriminatory behavior and the estimation of wage discrimination,"
Special Studies Papers
227, Board of Governors of the Federal Reserve System (U.S.).
- David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
- de Mel, Suresh & McKenzie, David J. & Woodruff, Christopher, 2009. "Measuring microenterprise profits: Must we ask how the sausage is made?," Journal of Development Economics, Elsevier, vol. 88(1), pages 19-31, January.
- Gustafsson, Bjorn & Li, Shi, 2004. "Expenditures on education and health care and poverty in rural China," China Economic Review, Elsevier, vol. 15(3), pages 292-301.
When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00269119. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD)
If references are entirely missing, you can add them using this form.