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A Distributional Analysis of the Gender Earnings Gap in Urban China

Author

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  • Millimet Daniel L

    (Southern Methodist University)

  • Wang Le

    (Southern Methodist University)

Abstract

We compare several income distributions in urban China in the late 1980s and mid-1990s using tests for stochastic dominance in order to decompose gender differentials. Examination of the entire distribution gives insight into the uniformity of such differentials across the distribution. Moreover, tests based on stochastic dominance allow for robust welfare comparisons. Our analysis reveals: (i) large and increasing differentials in predicted earnings across gender in the lower tail of the distribution, but few differences in the upper tail, (ii) discrimination explains one-third to one-half of the total predicted earnings differential in the lower tail of the distribution, and little of the disparity in the upper tail, (iii) gender equity has eroded during China's economic transition, particularly for the youngest cohort, and (iv) significant nonuniformities in earnings differentials suggest the need to broaden analyses of gender differentials to incorporate earnings dispersion.

Suggested Citation

  • Millimet Daniel L & Wang Le, 2006. "A Distributional Analysis of the Gender Earnings Gap in Urban China," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-50, February.
    • Handle: RePEc:bpj:bejeap:v:contributions.5:y:2006:i:1:n:5
    DOI: 10.1515/1538-0645.1461
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    Cited by:

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    2. Azam, Mehtabul, 2012. "Changes in Wage Structure in Urban India, 1983–2004: A Quantile Regression Decomposition," World Development, Elsevier, vol. 40(6), pages 1135-1150.
    3. Ekaterina Selezneva & Philippe Van Kerm, 2016. "A distribution-sensitive examination of the gender wage gap in Germany," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 21-40, March.
    4. Junsen Zhang & Jun Han & Pak-Wai Liu & Yaohui Zhao, 2008. "Trends in the Gender Earnings Differential in Urban China, 1988–2004," ILR Review, Cornell University, ILR School, vol. 61(2), pages 224-243, January.
    5. Rickne, Johanna, 2010. "Gender, Wages and Social Security in China’s Industrial Sector," Working Paper Series 2010:8, Uppsala University, Department of Economics.
    6. Le Wang, 2013. "How Does Education Affect the Earnings Distribution in Urban China?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 75(3), pages 435-454, June.
    7. Philippe Van Kerm, 2013. "Generalized measures of wage differentials," Empirical Economics, Springer, vol. 45(1), pages 465-482, August.
    8. Zheng Fang & Chris Sakellariou, 2015. "Glass Ceilings versus Sticky Floors: Evidence from Southeast Asia and an International Update," Asian Economic Journal, East Asian Economic Association, vol. 29(3), pages 215-242, September.
    9. Lai, Fang, 2010. "Are boys left behind? The evolution of the gender achievement gap in Beijing's middle schools," Economics of Education Review, Elsevier, vol. 29(3), pages 383-399, June.
    10. Wang, Le, 2012. "Economic transition and college premium in urban China," China Economic Review, Elsevier, vol. 23(2), pages 238-252.
    11. Lin Xiu & Morley Gunderson, 2013. "Credential Effects and the Returns to Education in China," LABOUR, CEIS, vol. 27(2), pages 225-248, June.
    12. Liu, Qian, 2012. "Unemployment and labor force participation in urban China," China Economic Review, Elsevier, vol. 23(1), pages 18-33.

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