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Labor market segmentation by industry sectors and wage gaps between migrants and local urban residents in urban China

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  • Ma, Xinxin

Abstract

This paper explores the influence of labor market segmentation by industry sectors on the wage gap between rural-to-urban migrants and local urban residents in China in the 2000s. Using Chinese Household Income Project (CHIP) survey data and the results based on the Brown decomposition method, the results indicate that the influence of intra-industrial differentials is greater than the influence of inter-industry differentials in both 2002 and 2013. The influence of the explained component of the intra-industry differentials is larger in both 2002 and 2013, and the influence of the unexplained component of the intra-industrial differentials rises steeply from 2002 to 2013. These results show that the individual characteristic differentials (e.g. human capital) in the same industry sector is the main factor causing the wage gap in both 2002 and 2013, and the problem of discrimination against migrants in the same industry sector became more serious from 2002 to 2013.

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  • Ma, Xinxin, 2018. "Labor market segmentation by industry sectors and wage gaps between migrants and local urban residents in urban China," China Economic Review, Elsevier, vol. 47(C), pages 96-115.
    • Handle: RePEc:eee:chieco:v:47:y:2018:i:c:p:96-115
    DOI: 10.1016/j.chieco.2017.11.007
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    3. Xinxin Ma, 2019. "The Impact of Membership of the Communist Party of China on Wages," Economics Bulletin, AccessEcon, vol. 39(4), pages 2839-2856.
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    7. Huang, Hongyun & Wang, Fengrong & Song, Malin & Balezentis, Tomas & Streimikiene, Dalia, 2021. "Green innovations for sustainable development of China: Analysis based on the nested spatial panel models," Technology in Society, Elsevier, vol. 65(C).
    8. Björn Gustafsson & Haiyuan Wan, 2018. "Wage growth and inequality in urban China: 1988–2013," WIDER Working Paper Series 163, World Institute for Development Economic Research (UNU-WIDER).
    9. Xinxin Ma & Jingwen Zhang, 2019. "Population Policy and its Influences on Female Labor Supply: Evidence from China," Asian Development Policy Review, Asian Economic and Social Society, vol. 7(4), pages 261-276, December.
    10. Zagler, Martin & Amighini, Alessia & Fang, Weidi, 2023. "On the evolution of the wage premium for party membership in China," Department of Economics Working Paper Series 351, WU Vienna University of Economics and Business.
    11. Jianbo Liu & Xiaodong Zheng & Marie Parker & Xiangming Fang, 2020. "Childhood Left-Behind Experience and Employment Quality of New-Generation Migrants in China," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(4), pages 691-718, August.
    12. Thomas Vendryes & Jiaqi Zhan, 2023. "Hukou-Based Discrimination, Dialects and City Characteristics," Documents de recherche 23-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    13. Zhan, Peng & Ma, Xinxin & Li, Shi, 2021. "Migration, population aging, and income inequality in China," Journal of Asian Economics, Elsevier, vol. 76(C).
    14. Xinxin Ma, 2022. "Grandchildren Care and Labor Supply of Middle-Aged Grandmothers: Evidence from China," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 581-598, September.
    15. Chen, Shih-Chih & Jiang, Wei & Ma, Yin, 2020. "Decent work in a transition economy: An empirical study of employees in China," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    16. Xinxin Ma & Ichiro Iwasaki, 2021. "Does communist party membership bring a wage premium in China? a meta-analysis," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 19(1), pages 55-94, January.
    17. Gustafsson Björn & Nivorozhkina Ludmila & Wan Haiyuan, 2021. "Working beyond the normal retirement age in urban China and urban Russia," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-21, January.
    18. Jingwen Tan & Shixi Kang, 2021. "Finding the Instrumental Variables of Household Registration: A discussion of the impact of China's household registration system on the citizenship of the migrant population," Papers 2112.07268, arXiv.org, revised Dec 2021.
    19. Xinxin Ma & Ichiro Iwasaki, 2021. "Return to schooling in China: a large meta-analysis," Education Economics, Taylor & Francis Journals, vol. 29(4), pages 379-410, July.
    20. Björn Gustafsson & Haiyuan Wan, 2018. "Wage growth and inequality in urban China: 1988-2013," WIDER Working Paper Series wp-2018-163, World Institute for Development Economic Research (UNU-WIDER).
    21. Bach Nguyen, 2022. "Internal migration and earnings: Do migrant entrepreneurs and migrant employees differ?," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 901-944, August.
    22. Qian Sun, 2023. "SOE wage premium in China: new evidence," Empirical Economics, Springer, vol. 64(3), pages 1121-1147, March.
    23. Gustafsson, Björn Anders & Nivorozhkina, Ludmila & Wan, Haiyuan, 2021. "Working Beyond the Normal Retirement Age in Urban China and Urban Russia," IZA Discussion Papers 14294, Institute of Labor Economics (IZA).
    24. Mengdan Li, 2020. "What caused the wage convergence between urban natives and migrants in China?," Economics Bulletin, AccessEcon, vol. 40(3), pages 2275-2288.

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    More about this item

    Keywords

    Segmentation; Industry sector; Wage gap; Migrant; Local urban resident;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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