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Wage forming mechanism in the market transitional process of China (1993¡ª2005): Evidence from the provincial panel data

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  • NING Guangjie

    (School of Economics, Nankai University, Tianjin 300071, China)

Abstract

Using the panel data of 31 provinces during 1993-2005, this paper examines the factors that influence wage changes in China. During the process of the marketization, the linkage between wage and some factors such as inflation, productivity and unemployment rate has been strengthened. But there still exists large room for further development of labor market, as the relationship between the wage and productivity is not sufficiently strong, and the wage¡¯s response to the unemployment is lagged. The wage forming mechanism in different regions also varies. The econometric results show that, contrary to some public perceptions, the eastern areas¡¯ wage marketization is not satisfactory.

Suggested Citation

  • NING Guangjie, 2008. "Wage forming mechanism in the market transitional process of China (1993¡ª2005): Evidence from the provincial panel data," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 3(2), pages 312-326, June.
    • Handle: RePEc:fec:journl:v:3:y:2008:i:2:p:312-326
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-008-0015-7
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    More about this item

    Keywords

    wage; labor productivity; inflation; unemployment rate; wage stickiness;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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