Has China Crossed the River? The Evolution of Wage Structure in Urban China During Reform and Retrenchment

Posted: 7 Apr 2006

See all articles by Simon Appleton

Simon Appleton

University of Nottingham - School of Economics

Lina Song

Nottingham University Business School

Qingjie Xia

Peking University, School of Economics

Abstract

In this paper, we examine the determinants of urban wages in China from 1988 to 2002. We find increased returns to education but a decrease in the returns to experience. The 2002 data imply that the widening pure gender gap and the growth in the premium to Communist Party membership may have come to an end. The reform of the state-owned enterprise (SOE) sector and the shift in industrial structure out of heavy industry is shown to impact wages of workers within those sectors. We use recall panel data for 1998 to 2002 to provide fixed effects estimates of the impact of sector ownership, Communist Party membership and unemployment on wages.

Keywords: China, labor market, unemployment, panel data, wage premium, fixed effects estimations

JEL Classification: J31, J42, O15, P23

Suggested Citation

Appleton, Simon and Song, Lina and Xia, Qingjie, Has China Crossed the River? The Evolution of Wage Structure in Urban China During Reform and Retrenchment. Journal of Comparative Economics, Vol. 33, No. 4, pp. 644-663, December 2005, Available at SSRN: https://ssrn.com/abstract=895473

Simon Appleton (Contact Author)

University of Nottingham - School of Economics ( email )

University Park
Nottingham NG7 2RD
United Kingdom

Lina Song

Nottingham University Business School ( email )

Jubilee Campus
Wollaton Road,
Nottingham, NG8 1BB
United Kingdom
0115 8466217 (Phone)

Qingjie Xia

Peking University, School of Economics ( email )

Beijing 100871
China

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