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Earnings mobility during labor market reforms in urban China

Author

Listed:
  • Fields, Gary S.
  • Meng, Xin
  • Song, Yang

Abstract

This paper provides empirical evidence on patterns of earnings mobility for China for the 2000s and before to study how the labor market reform in the late 1990s affects individuals' earnings mobility. We find convergent earnings mobility in the 1990s but clearly divergent earnings mobility in the 2000s, meaning that those with the highest earnings to begin with experienced the largest earnings gains after 2000. Policies would be desirable such as compensating low-skill workers by establishing government-initiated training programs. More generally, welfare policies are necessary to help disadvantaged workers avoid from low-income or poverty traps who suffer from negative shocks in market-oriented reforms.

Suggested Citation

  • Fields, Gary S. & Meng, Xin & Song, Yang, 2022. "Earnings mobility during labor market reforms in urban China," China Economic Review, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:chieco:v:75:y:2022:i:c:s1043951x22001018
    DOI: 10.1016/j.chieco.2022.101843
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    References listed on IDEAS

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    Cited by:

    1. Robert Duval‐Hernández & Gary S. Fields & George H. Jakubson, 2023. "Inequality And Panel Income Changes: Conditions For Possibilities And Impossibilities," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 64(1), pages 295-324, February.

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    More about this item

    Keywords

    Earnings mobility; Inequality; Labor market reforms; China;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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