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Relative Pay and its Underlying Determinants for Domestic Eldercare Workers in Urban China

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  • Xiao-yuan Dong

    ()

  • Jin Feng
  • Yangyang Yu

Abstract

The market of domestic services in China has grown rapidly since the country embarked on market transition in the late 1970s. Domestic workers for eldercare are in especially high demand as a result of the aging population and the changing family structure. This paper examines the relative pay of domestic workers for eldercare and its underlying determinants. The estimates show that holding constant the observable individual characteristics, domestic workers for eldercare earn 24 percent less than do other types of workers in the service sector in Shanghai. The analysis attributes the low wage of eldercare workers to the fact that domestic work is culturally devaluated, that eldercare is performed by workers from the most marginalized segment of the labour force in the cities, and that the users of eldercare are relatively poor among the users of paid domestic services.

Suggested Citation

  • Xiao-yuan Dong & Jin Feng & Yangyang Yu, 2014. "Relative Pay and its Underlying Determinants for Domestic Eldercare Workers in Urban China," Departmental Working Papers 2014-01, The University of Winnipeg, Department of Economics.
  • Handle: RePEc:win:winwop:2014-01
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    File URL: http://economics.uwinnipeg.ca/RePEc/winwop/2014-01.pdf
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    1. repec:ilo:ilowps:420406 is not listed on IDEAS
    2. Dinkelman, Taryn & Ranchhod, Vimal, 2012. "Evidence on the impact of minimum wage laws in an informal sector: Domestic workers in South Africa," Journal of Development Economics, Elsevier, vol. 99(1), pages 27-45.
    3. Knight, John & Song, Lina, 1999. "The Rural-Urban Divide: Economic Disparities and Interactions in China," OUP Catalogue, Oxford University Press, number 9780198293309.
    4. Valeria ESQUIVEL, 2010. "Care workers in Argentina: At the crossroads of labour market institutions and care services," International Labour Review, International Labour Organization, vol. 149(4), pages 477-493, December.
    5. Sai Ding & Xiao-yuan Dong & Shi Li, 2009. "Women's Employment and Family Income Inequality during China's Economic Transition," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 163-190.
    6. Powers Elizabeth T & Powers Nicholas J, 2010. "Causes of Caregiver Turnover and the Potential Effectiveness of Wage Subsidies for Solving the Long-Term Care Workforce 'Crisis'," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-30, January.
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