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Decomposing wage differentials between migrant workers and urban workers in urban China's labor markets

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  • Lee, Leng

Abstract

This paper looks at wage discrimination faced by China's rural–urban migrants. Using data from the China Urban Labour Survey, it uses standard wage decomposition techniques to measure the extent wage gaps between migrants and locals are attributable to migration. Because the survey covers five cities, the results allow for an investigation regarding how much variation in discrimination there is. Unlike previous studies of wage discrimination in China, this research includes a more full measure of remuneration by including non-financial benefits as well as bonuses earned. The results suggest that migrants still face a significant amount of discrimination, but that this varies a lot between cities.

Suggested Citation

  • Lee, Leng, 2012. "Decomposing wage differentials between migrant workers and urban workers in urban China's labor markets," China Economic Review, Elsevier, vol. 23(2), pages 461-470.
    • Handle: RePEc:eee:chieco:v:23:y:2012:i:2:p:461-470
    DOI: 10.1016/j.chieco.2012.03.004
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    More about this item

    Keywords

    Migration; Discrimination; Wage; China;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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