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Understanding Urban Wage Inequality in China 1988–2008: Evidence from Quantile Analysis

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  • Appleton, Simon
  • Song, Lina
  • Xia, Qingjie

Abstract

This paper examines change in wage gaps in urban China from 1988 to 2008 by estimating quantile regressions on CHIPS data. It applies the Machado and Mata (2005) decomposition, finding sharp increases in inequality largely due to changes in the wage structure. During 2002–08, changes in the returns to education and experience have been equalizing. However, changes in other categories of wage differential—by sex, occupation, ownership, industrial sector, and province—widened inequality. The gender gap continued to rise, as did the gap between white collar and blue collar workers, and between manufacturing and other sectors.

Suggested Citation

  • Appleton, Simon & Song, Lina & Xia, Qingjie, 2014. "Understanding Urban Wage Inequality in China 1988–2008: Evidence from Quantile Analysis," World Development, Elsevier, vol. 62(C), pages 1-13.
    • Handle: RePEc:eee:wdevel:v:62:y:2014:i:c:p:1-13
    DOI: 10.1016/j.worlddev.2014.04.005
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    More about this item

    Keywords

    China; labor; wages; quantile regression; inequality;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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