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Innovation, Wages, and Polarization in China

Author

Listed:
  • Fleisher, Belton M.

    (Ohio State University)

  • McGuire, William H.

    (University of Washington Tacoma)

  • Su, Yaqin

    (Hunan University)

  • Zhao, Min Qiang

    (Xiamen University)

Abstract

Using data from CHIPS 1995-2013, we find polarization of employment from middle-income Skilled jobs to work in the Unskilled and Self-Employment job categories. This redistribution of employment is consistent with the automation of routine noncognitive tasks in the skilled sector as analyzed in a number of papers on advanced economies and some work on the Chinese economy. While the Unskilled and Self-Employment jobs remain below median income, the redistribution of employment has not been associated with a commensurate polarization of labor income. We find no evidence of polarization of either employment or income at the upper end of the job-skill spectrum.

Suggested Citation

  • Fleisher, Belton M. & McGuire, William H. & Su, Yaqin & Zhao, Min Qiang, 2018. "Innovation, Wages, and Polarization in China," IZA Discussion Papers 11569, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp11569
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    Cited by:

    1. Scott Rozelle & Yiran Xia & Dimitris Friesen & Bronson Vanderjack & Nourya Cohen, 2020. "Correction to: Moving Beyond Lewis: Employment and Wage Trends in China’s High- and Low-Skilled Industries and the Emergence of an Era of Polarization," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 62(4), pages 774-775, December.
    2. Arief A. Yusuf & Reza Anglingkusumo & Andy Sumner & Putri R. Halim & Anggita C.M. Kusuma, 2020. "Routinization And The Changing Task Composition In The Labor Market: Evidence From Indonesia," Working Papers WP/06/2020, Bank Indonesia.
    3. Antonio Martins-Neto & Nanditha Mathew & Pierre Mohnen & Tania Treibich, 2024. "Is There Job Polarization in Developing Economies? A Review and Outlook," The World Bank Research Observer, World Bank, vol. 39(2), pages 259-288.

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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution

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