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Title
Inter-Industry Wage Differentials: An Increasingly Important Contributor to Urban China Income Inequality
Creator
Creator Name
Chen, Zhao Chen, Zhao
Affiliation
Affiliation Name
Fudan University
Creator Name
Lu, Ming Lu, Ming
Affiliation
Affiliation Name
Fudan University
Affiliation
Affiliation Name
Zhejiang University
Creator Name
Wan, Guanghua Wan, Guanghua
Affiliation
Affiliation Name
Asian Development Bank
Key Word
Inter-industry wage differentials
Income inequality
Regression-based decomposition
Abstract
How significantly inter-industry wage differentials contribute to rising income inequality is an essential policy issue for transitional economies. Using regression-based inequality decomposition, this paper finds that inter-industrial wage differentials contributed increasingly to income inequality in urban China through 1988, 1995, and 2002, mainly due to rapid income growth in monopolistic industries. Factors such as region, education, ownership, occupation, and holding a second job also contribute increasingly to income inequality, while being employed the whole year and age have decreasing contributions. If China seeks to reduce urban income inequality, removing entry barriers in the labor market and breaking monopoly power in the goods market are essential policy prescriptions.
Publisher
Hitotsubashi University Research Project of Policies for East Asia
Issued Date
2009-12
Language
英語(eng)
Resource Type
technical report（テクニカルレポート）
Version Type
VoR
Relation - Is Part Of
Related Title
Fukino DP Series, No. 016
Number of Pages
23
Sponsorship
Fukino foundation
Appears in Collections
Fukino Project Discussion paper series
URL
https://hdl.handle.net/10086/18078