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The changing nature of work and earnings inequality in China

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  • Chunbing Xing

Abstract

This paper examines the evolution of China's industrial and occupational structure in the last two decades and its impact on wage inequality. We find that non-routine cognitive and interpersonal tasks have increased, while routine cognitive tasks first increased and then declined. Occupation structural change is accompanying rising wage inequality. The wage premium for educated workers rose sharply in the 1990s and remained high thereafter. Occupations with high routine task intensity are associated with lower wages.

Suggested Citation

  • Chunbing Xing, 2021. "The changing nature of work and earnings inequality in China," WIDER Working Paper Series wp-2021-105, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2021-105
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    References listed on IDEAS

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    1. Gustafsson,Björn A. & Shi,Li & Sicular,Terry (ed.), 2008. "Inequality and Public Policy in China," Cambridge Books, Cambridge University Press, number 9780521870450, September.
    2. Lewandowski, Piotr & Park, Albert & Schotte, Simone, 2020. "The Global Distribution of Routine and Non-Routine Work," IZA Discussion Papers 13384, Institute of Labor Economics (IZA).
    3. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006. "The Polarization of the U.S. Labor Market," American Economic Review, American Economic Association, vol. 96(2), pages 189-194, May.
    4. Alwyn Young, 2013. "Inequality, the Urban-Rural Gap, and Migration," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(4), pages 1727-1785.
    5. Ge, Peng & Sun, Wenkai & Zhao, Zhong, 2021. "Employment structure in China from 1990 to 2015," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 168-190.
    6. Xin Meng & Kailing Shen & Sen Xue, 2010. "Economic Reform, Education Expansion, and Earnings Inequality for Urban Males in China, 1988-2007," CEPR Discussion Papers 639, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    7. John Knight & Lina Song, 2003. "Increasing urban wage inequality in China," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 597-619, December.
    8. Piotr Lewandowski & Albert Park & Wojciech Hardy & Yang Du & Saier Wu, 2022. "Technology, Skills, and Globalization: Explaining International Differences in Routine and Nonroutine Work Using Survey Data," The World Bank Economic Review, World Bank, vol. 36(3), pages 687-708.
    9. Luo, Chuliang & Li, Shi & Sicular, Terry, 2020. "The long-term evolution of national income inequality and rural poverty in China," China Economic Review, Elsevier, vol. 62(C).
    10. Sergio P. Firpo & Nicole M. Fortin & Thomas Lemieux, 2018. "Decomposing Wage Distributions Using Recentered Influence Function Regressions," Econometrics, MDPI, vol. 6(2), pages 1-40, May.
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    Cited by:

    1. Maria Monica Wihardja & Abror Tegar Pradana, 2024. "Examining the drivers of changes in mean earnings and earnings inequality in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 38(2), pages 232-255, June.
    2. Wan, Haiyuan & Gustafsson, Björn Anders & Wang, Yingfei, 2024. "Convergence of Inequality Dimensions in China: Income, Consumption, and Wealth from 1988 to 2018," IZA Discussion Papers 16719, Institute of Labor Economics (IZA).
    3. Bennett, Fidel & Escudero, Verónica & Liepmann, Hannah & Podjanin, Ana, 2022. "Using Online Vacancy and Job Applicants' Data to Study Skills Dynamics," VfS Annual Conference 2022 (Basel): Big Data in Economics 264023, Verein für Socialpolitik / German Economic Association.

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    Keywords

    Occupations; Wage inequality; Education; China; Earnings inequality;
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