IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/16575.html
   My bibliography  Save this paper

The Regional Distribution of Skill Premia in Urban China

Author

Listed:
  • John Whalley
  • Chunbing Xing

Abstract

We document and discuss the implications of a sharp increase in the regional dispersion of skill premia in China in recent years. This has previously been little noted or discussed. We use three urban household surveys for 1995, 2002, and 2007 and estimate skill premia at provincial and city levels. Results show an increase in the skill premium across all regions between 1995 and 2002, but only coastal regions show significant increases in skill premia between 2002 and 2007. For 2007, coastal regions also have much higher within region wage inequality and this contributes more to overall urban wage inequality than within region inequality of non-coastal regions. Using a fixed effects model at city level, we find that ownership restructuring is a significant factor in driving up skill premia during the first period, and that the ongoing process of China's integration into the global economy plays a significant and regionally concentrated role in the second period.

Suggested Citation

  • John Whalley & Chunbing Xing, 2010. "The Regional Distribution of Skill Premia in Urban China," NBER Working Papers 16575, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:16575
    Note: ED LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w16575.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cai Fang & Du Yang & Wang Meiyan, 2009. "Migration and Labor Mobility in China," Human Development Research Papers (2009 to present) HDRP-2009-09, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Apr 2009.
    2. Guanghua Wan & Ming Lu & Zhao Chen, 2007. "Globalization And Regional Income Inequality: Empirical Evidence From Within China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 35-59, March.
    3. Gustafsson,Björn A. & Shi,Li & Sicular,Terry (ed.), 2008. "Inequality and Public Policy in China," Cambridge Books, Cambridge University Press, number 9780521870450.
    4. Lee Branstetter, 2006. "China's Embrace of Globalisation," Working Papers id:640, eSocialSciences.
    5. 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.
    6. Zhi Wang & Shang-Jin Wei, 2010. "What Accounts for the Rising Sophistication of China's Exports?," NBER Chapters, in: China's Growing Role in World Trade, pages 63-104, National Bureau of Economic Research, Inc.
    7. Hongbin Cai & Yuyu Chen & Li-An Zhou, 2010. "Income and Consumption Inequality in Urban China: 1992-2003," Economic Development and Cultural Change, University of Chicago Press, vol. 58(3), pages 385-413, April.
    8. Peter K. Schott, 2006. "The Relative Sophistication of Chinese Exports," NBER Working Papers 12173, National Bureau of Economic Research, Inc.
    9. Xing, Chunbing, 2009. "Migration, Self-selection, and Income Distributions: Evidence from Rural and Urban China," MPRA Paper 17036, University Library of Munich, Germany.
    10. Meng,Xin, 2009. "Labour Market Reform in China," Cambridge Books, Cambridge University Press, number 9780521121118.
    11. Xiaobo Zhang & Kevin Zhang, 2003. "How Does Globalisation Affect Regional Inequality within A Developing Country? Evidence from China," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 47-67.
    12. Zhang, Junsen & Zhao, Yaohui & Park, Albert & Song, Xiaoqing, 2005. "Economic returns to schooling in urban China, 1988 to 2001," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 730-752, December.
    13. Fang, Cai & Yang, Du & Meiyan, Wang, 2009. "Migration and Labor Mobility in China," MPRA Paper 19187, University Library of Munich, Germany.
    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. Ohyun Kwon & Simon Chang & Belton M. Fleisher, 2015. "Evolution of the Interindustry Wage Structure in China Since the 1980s," Pacific Economic Review, Wiley Blackwell, vol. 20(1), pages 17-44, February.
    2. Li, Shi & Whalley, John & Xing, Chunbing, 2014. "China's higher education expansion and unemployment of college graduates," China Economic Review, Elsevier, vol. 30(C), pages 567-582.
    3. Cui, Yuling & Nahm, Daehoon & Tani, Massimiliano, 2013. "Earnings Differentials and Returns to Education in China, 1995-2008," IZA Discussion Papers 7349, Institute of Labor Economics (IZA).
    4. Kwon, Ohyun & Fleisher, Belton M. & Deng, Quheng, 2011. "Evolution of the Industrial Wage Structure in China Since 1980," IZA Discussion Papers 5880, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xing, Chunbing & Li, Shi, 2012. "Residual wage inequality in urban China, 1995–2007," China Economic Review, Elsevier, vol. 23(2), pages 205-222.
    2. Luo, Dongdong & Xing, Chunbing, 2016. "Population adjustments in response to local demand shifts in China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 101-114.
    3. John WHALLEY & Chunbing XING, 2014. "The regional distribution of skill premia in urban China: Implications for growth and inequality," International Labour Review, International Labour Organization, vol. 153(3), pages 395-419, September.
    4. Luo, Dongdong & Xing, Chunbing, 2015. "Who Is More Mobile in Response to Local Demand Shifts in China?," IZA Discussion Papers 9063, Institute of Labor Economics (IZA).
    5. Nie, Haifeng & Xing, Chunbing, 2019. "Education expansion, assortative marriage, and income inequality in China," China Economic Review, Elsevier, vol. 55(C), pages 37-51.
    6. Julie A. Silva, 2013. "Rural Income Inequality in Mozambique: National Dynamics and Local Experiences?," The Review of Regional Studies, Southern Regional Science Association, vol. 43(1), pages 23-50, Summer.
    7. Chunbing Xing, 2006. "Human Capital and Wage Determination in Different Ownerships, 1989-97," WIDER Working Paper Series RP2006-121, World Institute for Development Economic Research (UNU-WIDER).
    8. Bjorn Gustafsson & Sai Ding, 2011. "Unemployment and the Rising Number of Non-Workers in Urban China: Causes and Distributional Consequences," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201117, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
    9. Lu Ming & Zhao Chen & Yongqin Wang & Yan Zhang & Yuan Zhang & Changyuan Luo, 2013. "China’s Economic Development," Books, Edward Elgar Publishing, number 14502.
    10. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
    11. Chen, Binkai & Liu, Dan & Lu, Ming, 2018. "City size, migration and urban inequality in China," China Economic Review, Elsevier, vol. 51(C), pages 42-58.
    12. Wei Ha & Junjian Yi & Junsen Zhang, 2009. "Inequality and Internal Migration in China: Evidence from Village Panel Data," Human Development Research Papers (2009 to present) HDRP-2009-27, Human Development Report Office (HDRO), United Nations Development Programme (UNDP), revised Jul 2009.
    13. Qingjie Xia & Lina Song & Shi Li & Simon Appleton, 2014. "The effect of the state sector on wage inequality in urban China: 1988--2007," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 12(1), pages 29-45, February.
    14. Dennis Tao Yang & Vivian Weijia Chen & Ryan Monarch, 2010. "Rising Wages: Has China Lost Its Global Labor Advantage?," Pacific Economic Review, Wiley Blackwell, vol. 15(4), pages 482-504, October.
    15. Chunbing Xing, 2012. "Changes in Job Structure and Rising Wage Inequality in Urban China, 1995-2007," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 7(2), pages 305-337, June.
    16. Zhao Chen & Ming Lu & Guanghua Wan, 2010. "Inter-Industry Wage Differentials: An Increasingly Important Contributor to Urban China Income Inequality," Global COE Hi-Stat Discussion Paper Series gd09-130, Institute of Economic Research, Hitotsubashi University.
    17. Michele Bruni & Claudio Tabacchi, 2011. "Present and Future of the Chinese labour Marke," Department of Economics 0649, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    18. Cui, Yuling & Nahm, Daehoon & Tani, Massimiliano, 2013. "Earnings Differentials and Returns to Education in China, 1995-2008," IZA Discussion Papers 7349, Institute of Labor Economics (IZA).
    19. Ha, Wei & Yi, Junjian & Zhang, Junsen, 2009. "Internal Migration and Income Inequality in China: Evidence from Village Panel Data," MPRA Paper 16896, University Library of Munich, Germany.
    20. Fields, Gary S. & Meng, Xin & Song, Yang, 2022. "Earnings mobility during labor market reforms in urban China," China Economic Review, Elsevier, vol. 75(C).

    More about this item

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    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:nbr:nberwo:16575. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.