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Migrants as second-class workers in urban China? A decomposition analysis

Author

Listed:
  • Sylvie Démurger

    () (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

  • Marc Gurgand

    (PJSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)

  • Shi Li

    (LAGEP - Laboratoire d'automatique et de génie des procédés - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - École Supérieure Chimie Physique Électronique de Lyon - CNRS - Centre National de la Recherche Scientifique)

  • Ximing Yue

    (Renmin University of China - Renmin University of China)

Abstract

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 (working time effect); and (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, this has no clear impact on earnings differentials, because the sectoral effect is not robust to the path followed for the decomposition. The second main finding is that the population effect is robust and significantly more important than wage or working time effects. This implies that the main source of disparity between the two populations is pre-market (education opportunities) rather than on-market.

Suggested Citation

  • Sylvie Démurger & Marc Gurgand & Shi Li & Ximing Yue, 2009. "Migrants as second-class workers in urban China? A decomposition analysis," Post-Print halshs-00451578, HAL.
  • Handle: RePEc:hal:journl:halshs-00451578
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00451578
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    References listed on IDEAS

    as
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    Keywords

    migration; chinese labor market; discrimination; earnings differentials;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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