IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00627719.html
   My bibliography  Save this paper

Earnings Differentials between the Public and Private Sectors in China: Exploring Changes for Urban Local Residents in the 2000s

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 - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

  • Shi Li

    (School of Economics and Business Administration - Beijing Normal University)

  • Juan Yang

    (School of Economics and Business Administration - Beijing Normal University)

Abstract

This paper analyzes the changes in public-private sector earnings differentials for local residents in urban China between 2002 and 2007. We find that earnings gaps across ownership sectors decreased during this period and that the convergence trend has been in favor of the private and semi-public sectors as opposed to the public sector. This trend is in sharp contrast to what occurred at the turn of the 21st century when employees the government and state-owned enterprises were found to enjoy a privileged situation. Differences in endowments are found to play a growing role in explaining earnings differentials. However, although it is becoming less of an issue, segmentation across ownership remains important, especially for high-wage earners.

Suggested Citation

  • Sylvie Démurger & Shi Li & Juan Yang, 2012. "Earnings Differentials between the Public and Private Sectors in China: Exploring Changes for Urban Local Residents in the 2000s," Post-Print halshs-00627719, HAL.
  • Handle: RePEc:hal:journl:halshs-00627719 Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00627719
    as

    Download full text from publisher

    File URL: https://halshs.archives-ouvertes.fr/halshs-00627719/document
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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 933-958, July.
    2. Sylvie DÉMURGER & Martin FOURNIER & Yi CHEN, 2007. "The Evolution Of Gender Earnings Gaps And Discrimination In Urban China, 1988-95," The Developing Economies, Institute of Developing Economies, vol. 45(1), pages 97-121.
    3. Elder, Todd E. & Goddeeris, John H. & Haider, Steven J., 2010. "Unexplained gaps and Oaxaca-Blinder decompositions," Labour Economics, Elsevier, vol. 17(1), pages 284-290, January.
    4. Brandt, Loren & Holz, Carsten A, 2006. "Spatial Price Differences in China: Estimates and Implications," Economic Development and Cultural Change, University of Chicago Press, pages 43-86.
    5. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
    6. Meng,Xin, 2009. "Labour Market Reform in China," Cambridge Books, Cambridge University Press, number 9780521121118, March.
    7. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    8. Dong, Xiao-yuan & Bowles, Paul, 2002. "Segmentation and discrimination in China's emerging industrial labor market," China Economic Review, Elsevier, vol. 13(2-3), pages 170-196.
    9. John Knight & Lina Song, 2003. "Increasing urban wage inequality in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 597-619, December.
    10. Lokshin, Michael M. & Jovanovic, Branko, 2003. "Wage differentials and state-private sector employment choice in the Federal Republic of Yugoslavia," Policy Research Working Paper Series 2959, The World Bank.
    11. Appleton, Simon & Song, Lina & Xia, Qingjie, 2005. "Has China crossed the river? The evolution of wage structure in urban China during reform and retrenchment," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 644-663, December.
    12. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, January.
    13. 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.
    14. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
    15. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    16. Kristjan-Olari Leping, 2006. "Evolution of the Public-Private Sector Wage Differential during Transition in Estonia," Post-Communist Economies, Taylor & Francis Journals, vol. 18(4), pages 419-436.
    17. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    18. Michael M. Lokshin & Branko Jovanovic, 2003. "Wage differentials and state-private sector employment choice in Yugoslavia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(3), pages 463-491, September.
    19. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
    20. 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.
    21. Xing, Chunbing & Li, Shi, 2012. "Residual wage inequality in urban China, 1995–2007," China Economic Review, Elsevier, vol. 23(2), pages 205-222.
    22. Knight, John & Li, Shi, 2005. "Wages, firm profitability and labor market segmentation in urban China," China Economic Review, Elsevier, vol. 16(3), pages 205-228.
    23. Adamchik, Vera A. & Bedi, Arjun S., 2000. "Wage differentials between the public and the private sectors: evidence from an economy in transition," Labour Economics, Elsevier, vol. 7(2), pages 203-224, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. C. Duvivier & S. Li & M.-F. Renard, 2013. "Are workers close to cities paid higher nonagricultural wages in rural China?," Applied Economics, Taylor & Francis Journals, vol. 45(30), pages 4308-4322, October.
    2. Tian Wu & Hongmei Zhao & Xunmin Ou, 2014. "Vehicle Ownership Analysis Based on GDP per Capita in China: 1963–2050," Sustainability, MDPI, Open Access Journal, vol. 6(8), pages 1-23, August.
    3. Pierre-Philippe Combes & Sylvie Démurger & Shi Li, 2016. "Productivity gains from agglomeration and migration in Chinese cities over 2002-2013," Post-Print halshs-01420835, HAL.
    4. Song, Yang, 2014. "What should economists know about the current Chinese hukou system?," China Economic Review, Elsevier, vol. 29(C), pages 200-212.
    5. repec:tpr:adbadr:v:34:y:2017:i:2:p:184-200 is not listed on IDEAS
    6. Mehtap Akgüç & Corrado Giulietti & Klaus Zimmermann, 2014. "The RUMiC longitudinal survey: fostering research on labor markets in China," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-14, December.
    7. Pierre-Philippe Combes & Sylvie Démurger & Shi Li, 2017. "Productivity Gains from Agglomeration and Migration in the People's Republic of China between 2002 and 2013," Asian Development Review, MIT Press, vol. 34(2), pages 184-200, September.
    8. Chi, Wei & Qian, Xiaoye, 2013. "Regional disparity of labor's share in China: Evidence and explanation," China Economic Review, Elsevier, vol. 27(C), pages 277-293.
    9. repec:eee:chieco:v:44:y:2017:i:c:p:227-240 is not listed on IDEAS
    10. Ma, Xinxin & Li, Shi, 2016. "Economic Transition and the Determinants of Self-employment in Urban China: 2007-2013," CEI Working Paper Series 2016-3, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    11. Cai, Lixin & Liu, Amy Y.C., 2015. "Wage determination and distribution in urban China and Vietnam: A comparative analysis," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 186-203.
    12. Kritkorn Nawakitphaitoon & Xuan Chen & Yuhao Ge, 2016. "State and Non-state Earnings Differentials over Time in China’s Urban Labor Market: Evidence from the Urban Household Survey (1994–2007)," Journal of Labor Research, Springer, vol. 37(3), pages 287-316, September.
    13. Ma, Xinxin & Li, Shi, 2016. "Industrial Segregation and Wage Gaps between Migrants and Local Urban Residents in China:2002-2013," CEI Working Paper Series 2016-4, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

    More about this item

    Keywords

    labor market; earnings differentials; segmentation; enterprise ownership; China;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-00627719. 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). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.