The effect of the state sector on wage inequality in urban China: 1988–2007

This paper examines the effect of the public sector and state-owned enterprises (SOEs) on wage inequality in urban China using China Household Income Project data. It applies quantile regression analysis, the Machado and Mata decomposition to investigate how urban wage inequality was affected by the...

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Main Authors: Xia, Qingjie, Song, Lina, Li, Shi, Appleton, Simon
Format: Article
Published: Taylor & Francis 2014
Subjects:
Online Access:https://eprints.nottingham.ac.uk/31846/
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author Xia, Qingjie
Song, Lina
Li, Shi
Appleton, Simon
author_facet Xia, Qingjie
Song, Lina
Li, Shi
Appleton, Simon
author_sort Xia, Qingjie
building Nottingham Research Data Repository
collection Online Access
description This paper examines the effect of the public sector and state-owned enterprises (SOEs) on wage inequality in urban China using China Household Income Project data. It applies quantile regression analysis, the Machado and Mata decomposition to investigate how urban wage inequality was affected by the changes in wage structure and employment shares of the public sector and SOEs. We find that since the radical state sector reforms designed to reduce overstaffing and improve efficiency in the late 1990s, urban wage gaps were narrowed due to the reduction in the employment share of the state sector; the wage premium of the state sector in comparison with the non-state sector increased significantly; and changes in the wage structure of the labour market caused the rise in urban wage inequality.
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institution University of Nottingham Malaysia Campus
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publishDate 2014
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recordtype eprints
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spelling nottingham-318462020-05-04T16:41:23Z https://eprints.nottingham.ac.uk/31846/ The effect of the state sector on wage inequality in urban China: 1988–2007 Xia, Qingjie Song, Lina Li, Shi Appleton, Simon This paper examines the effect of the public sector and state-owned enterprises (SOEs) on wage inequality in urban China using China Household Income Project data. It applies quantile regression analysis, the Machado and Mata decomposition to investigate how urban wage inequality was affected by the changes in wage structure and employment shares of the public sector and SOEs. We find that since the radical state sector reforms designed to reduce overstaffing and improve efficiency in the late 1990s, urban wage gaps were narrowed due to the reduction in the employment share of the state sector; the wage premium of the state sector in comparison with the non-state sector increased significantly; and changes in the wage structure of the labour market caused the rise in urban wage inequality. Taylor & Francis 2014-01-23 Article PeerReviewed Xia, Qingjie, Song, Lina, Li, Shi and Appleton, Simon (2014) The effect of the state sector on wage inequality in urban China: 1988–2007. Journal of Chinese Economic and Business Studies, 12 (1). pp. 29-45. ISSN 1476-5284 China public sector SOEs urban wage inequality wage gaps quantile regression counterfactual analysis http://www.tandfonline.com/doi/abs/10.1080/14765284.2013.875282 doi:10.1080/14765284.2013.875282 doi:10.1080/14765284.2013.875282
spellingShingle China
public sector
SOEs
urban wage inequality
wage gaps
quantile regression
counterfactual analysis
Xia, Qingjie
Song, Lina
Li, Shi
Appleton, Simon
The effect of the state sector on wage inequality in urban China: 1988–2007
title The effect of the state sector on wage inequality in urban China: 1988–2007
title_full The effect of the state sector on wage inequality in urban China: 1988–2007
title_fullStr The effect of the state sector on wage inequality in urban China: 1988–2007
title_full_unstemmed The effect of the state sector on wage inequality in urban China: 1988–2007
title_short The effect of the state sector on wage inequality in urban China: 1988–2007
title_sort effect of the state sector on wage inequality in urban china: 1988–2007
topic China
public sector
SOEs
urban wage inequality
wage gaps
quantile regression
counterfactual analysis
url https://eprints.nottingham.ac.uk/31846/
https://eprints.nottingham.ac.uk/31846/
https://eprints.nottingham.ac.uk/31846/