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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, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp11569
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    More about this item

    Keywords

    polarization; innovation; wage growth; China;

    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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