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Real wage cyclicality in urban China

  • Kang, Lili
  • Peng, Fei

This paper investigates the cyclical behaviour of real wages in urban China using the China Health and Nutrition Survey (CHNS) 1989-2006. Using changes in the unemployment rate as the cyclical measure, we find pro-cyclicality in the public sector and small/medium firms, but not in big firms. We also find real wages of male, high educated or ever married workers are flexible. Including bonuses increases the pro-cyclicality of regular wages.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 45418.

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Date of creation: 01 Dec 2010
Date of revision:
Publication status: Published in Economics Letters 2.115(2012): pp. 141-143
Handle: RePEc:pra:mprapa:45418
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  1. 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.
  2. Robert A. Hart & Paul J. Devereux, 2006. "Real wage cyclicality of job stayers, within-company job movers, and between-company job movers," Open Access publications 10197/314, School of Economics, University College Dublin.
  3. Shin, Donggyun, 1994. "Cyclicality of real wages among young men," Economics Letters, Elsevier, vol. 46(2), pages 137-142, October.
  4. Gary Solon & Warren Whatley & Ann Huff Stevens, 1997. "Wage changes and intrafirm job mobility over the business cycle: Two case studies," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 50(3), pages 402-415, April.
  5. Paul J. Devereux, 2001. "The cyclicality of real wages within employer-employee matches," Open Access publications 10197/312, School of Economics, University College Dublin.
  6. Richard B. Freeman, 2008. "Labor market institutions around the world," LSE Research Online Documents on Economics 19647, London School of Economics and Political Science, LSE Library.
  7. Zhongmin Wu, 2004. "Wage curve for urban China: a panel data approach," Applied Economics Letters, Taylor & Francis Journals, vol. 11(7), pages 425-428.
  8. repec:oup:qjecon:v:109:y:1994:i:1:p:1-25 is not listed on IDEAS
  9. Ball, Laurence & Romer, David, 1991. "Sticky Prices as Coordination Failure," American Economic Review, American Economic Association, vol. 81(3), pages 539-52, June.
  10. Lora Sabin, 1999. "The development of urban labour markets: China's urban wage curve, 1980-92," Journal of Development Studies, Taylor & Francis Journals, vol. 35(3), pages 134-152.
  11. Peng, Fei & Siebert, W. Stanley, 2006. "Real Wage Cyclicality in Italy," IZA Discussion Papers 2465, Institute for the Study of Labor (IZA).
  12. Meng, Xin & Kidd, Michael P., 1997. "Labor Market Reform and the Changing Structure of Wage Determination in China's State Sector during the 1980s," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 403-421, December.
  13. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
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