Wage differentials between urban and rural-urban migrant workers in China |
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| Institution: | 1. School of Economics, Nanjing University of Finance and Economics, 3, Wenyuan Road, Xianlin College Town, Nanjing 210023, China;2. Women''s Institute for Science, Equity and Race, 9291 Laurel Grove Road, Mechanicsville, VA 23116, USA;3. School of Economics and Business Administration, Beijing Normal University, 19, Xinjiekouwai Dajie, Beijing 100875, China;4. African and African-American Studies and Economics, Sanford School of Public Policy, Research Network for Racial and Ethnic Inequality, Social Science Research Institute, Duke University, Box 90239, Durham, NC 27708-0239, USA;1. The College of Economics and Trade, Hunan University, North Campus, Shi Jia Chong, Changsha, Hunan 410079, PR China;2. Center for Economics, Finance and Management Studies, Hunan University, North Campus, Shi Jia Chong, Changsha, Hunan, 410079, PR China;3. Southern Illinois University Carbondale, 1000 Faner Drive, Carbondale, IL62901, United States;1. School of International Trade and Economics, Central University of Finance and Economics, 39 South College Road, Haidian District, Beijing 100081, PR China;2. Department of International Economics & Trade, Nanjing University, 22 Hankou Road, Nanjing, 210093, PR China |
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| Abstract: | Since the end of the 1980s, the number of migrants working in the urban labor market has increased dramatically. However, migrant workers are treated differently from urban workers. In this paper we examine the labor market discrimination against rural migrants from the point of view of wage differentials using CHIP-2007 data. We apply Jann pooled method to deal with index number problem and use Heckman two step model to correct selection problem when decomposing the wage gap. The decomposition results show that a significant difference in wage gains persists between the two groups as late as 2007. In 2007 migrants only earned 49% of urban workers' income and 17% of the wage gap cannot be explained by observed factors. In detail, differences in educational attainment, work experience and distribution across industry, occupation, and ownership of enterprises account for most of the explained wage gap. |
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