Contact us
 |
[email protected] |
 |
3275638434 |
 |
 |
| Paper Publishing WeChat |
Useful Links
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Changes of Wage Structures in Chinese Public and Private Sectors: 1995-2007
Author(s)
Xinxin Ma
Full-Text PDF
XML 972 Views
DOI:10.17265/2328-2185/2016.06.002
Affiliation(s)
Xinxin Ma, Ph.D., (economics), associate professor, Institute of Economic Research, Hitotsubashi University, Tokyo, Japan.
ABSTRACT
Using CHIP (Chinese Household Income Project Survey) data and the sample selection bias corrected wage function model, this paper estimated changes in wage structure in China by ownership types (SOEs, COEs, FEs, and PEs) in 1995 and 2007. The major conclusions are as follows. First, effects of education on wage levels in SOEs and FEs become greater, while education effects decrease in SOEs and PEs under economic transition periods; firm-specific human capital becomes more important in the wage determination mechanism along with market-oriented reforms in SOEs, PEs, and FEs; age effect decreases in SOEs and COEs, but it becomes greater in PEs and FEs. Second, there exist wage structure differences between sectors by wage distributions. For example, in 2007, in SOEs, education return rates are higher for the low-wage and middle-wage groups, and the effect is the highest at the 40th percentile. However in COEs and FEs, education return rates are higher for the high-wage groups, and the effect is the highest at the 70th percentile in COEs and at the 70th percentile in FEs. Tenure effects are greater in the middle-wage groups (40th-80th) in SOEs, COEs, and FEs, and age effects are greater in the low-wage groups (5th-30th) in SOEs, FEs, and PEs.
KEYWORDS
public and private sectors, wage structure, human capital, Chinese economic transition
Cite this paper
References
Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education (1st ed.). New York: Columbia University Press.
Bowles, P., & White, G. (1998). Labor systems in transitional economies: An analysis of China’s township and village enterprises (Labor Markets in Transition: International Dimensions, International Review of Comparative Public Policy, No. 10). Stamford, Conn.: JAI Press.
Chen, G., Demurger, S., & Fournier, M. (2005). Wage differentials and ownership structure of China’s enterprises. World Economic Paper, 6, 11-31. (In Chinese)
Demurger, S., Fournier, M., Li, S., & Wei, Z. (2007). Economic liberation with rising segmentation in China’s urban labor market. Asian Economic Papers, 5(3), 58-103.
Demurger, S., Li, S., & Yang, J. (2012). Earning differentials between the public and private sectors in China: Exploring changes for urban local residents in the 2002s. China Economic Review, 23, 138-153.
Dong, X., & Bowles, P. (2002). Segmentation and discrimination in China’s emerging industrial labor market. China Economic Review, 13, 170-196.
Heckman, J. J. (1979). Sample selection bias as a specification error. Econometrica, 47(1), 153-161.
Koenker, R. W., & Bassett, G. J. (1978). Regression quantile. Econometrica, 46(1), 33-50.
Li, S., & Ma, X. (2015). Impact of minimum wage on gender wage gaps in Urban China. IZA Journal of Labor & Development, November, 2015, 4:20 doi: 10.1186/s40175-015-0044-4.
Lin, Y., Cai, F., & Li, Z. (1996). Miracle development strategy and economic reform in China. Shanghai: Shanghai People.
Maddala, G. S. (1983). Limited-dependent and qualitative variables in econometrics. New York: Cambridge University Press.
Ma, X. (2006). Overview and feature of wage systems in modern Chinese enterprises. Labor Studies, 59(10), 19-27. (In Japanese)
Ma, X. (2007). An empirical analysis of factor decomposition of differences between Japan and China of male-female wage differentials. The Japanese Journal of Labor Studies, 49(560), 96-107. (In Japanese)
Ma, X. (2009). The enterprise ownership reforms and the change of wage structure in China: Comparison of gender wage profiles differentials by ownership. Journal of Chinese Economic Studies, 6(1), 48-64. (In Japanese)
Ma, X. (2014). Wage policy: Economy transition and wage differentials of sectors. In K. Nakagane (Ed.), How did Chinese economy change? Evaluation of economic systems and policies in post-reform period. Tokyo: Kokusai Shoin Co., Ltd. (In Japanese)
Ma, X. (2015). Economic transition and wage differentials between public and private sectors in China. China-USA Business Review, 14(10), 477-494.
Marugawa, T. (2002). Series contemporary Chinese economy 3: Crustal change in the labor market. Nagoya: Nagoya University Publishing.
Meng, X., & Kidd, M. P. (1997). Labor market reform and the changing structure of wage determination in China’s state sector during the 1980s. Journal of Comparative Economics, 25, 403-421.
Mincer, J. (1974). Schooling, experience and earning. New York: Columbia University Press.
Nakagane, K. (1999). Economic development in China. Tokyo: Yuhikaku Publishing. (In Japanese)
Ono, A. (1989). Labor market and employment practices in Japan. Tokyo: Toyo Keizai Sinhosya Press. (In Japanese)
Piore, M. J. (1970). Job and training. In S. H. Beer and R. Barringer (Eds.), The state and the poor (pp. 53-83). Cambridge, MA: Winthrop.
Xing, C. (2006). Wage decision and returns to education by ownerships in China based on quantile regression. World Economic Papers, 1, 1-25.
Yamamoto, T. (2000). Labor economics in modern China: From rational low wage system to modern labor market. Seitama: Sotosya Press, Seitama, Japan. (In Japanese)
Ye, L., Li, S., & Luo, C. (2011). Industrial monopoly, ownership and enterprises wage inequality: An empirical research based on the first national economic census of enterprises data. Management World, 4, 26-36. (In Chinese)
Yin, Z., & Gan, L. (2009). Wage differentials between public and nonpublic sector in China. Economic Research, 4, 129-140. (In Chinese)
Zhang, J., & Xue, X. (2008). State and non-state sector wage differentials and human capital contribution. Economic Research, 4, 15-25. (In Chinese)
Zhang, Y. (2012). The change of income differentials between public and nonpublic sector in China. Economic Research, 4, 77-88. (In Chinese)