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Changes in Job Structure and Rising Wage Inequality in Urban China, 1995-2007

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  • Chunbing Xing

    (School of Economics and Business Administration, Beijing Normal University, Beijing 100875, China)

Abstract

We use household surveys from 1995, 2002, and 2007 to examine how changes in job structure contributed to China¡¯s rising urban wage inequality, considering three job characteristics: occupation, industry, and firm ownership. The explanatory power of job structure for wage inequality increased between 1995 and 2007. Both the change in relative number of jobs (composition effect) and the change in between-job and within-job wage gaps (price effect) contributed to rising wage inequality. Price effect was the major contributor, whereas composition effect played a larger role in the 1995¨C2002 period than in the 2002¨C2007 period, and at the lower-half distribution. Between-job inequality played a major role in the first period, and within-job inequality played a major role in the second period. Our results suggest that both technological change and institutional features influence job structure and wage inequality.

Suggested Citation

  • Chunbing Xing, 2012. "Changes in Job Structure and Rising Wage Inequality in Urban China, 1995-2007," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 7(2), pages 305-337, June.
    • Handle: RePEc:fec:journl:v:7:y:2012:i:2:p:305-337
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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-001-012-0014-7
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    Cited by:

    1. Cui, Yuling & Nahm, Daehoon & Tani, Massimiliano, 2013. "Earnings Differentials and Returns to Education in China, 1995-2008," IZA Discussion Papers 7349, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    job structure; wage inequality; urban China; decomposition;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • 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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