Wage Inequality in China

来源 :全国高校国际贸易学科协作组 | 被引量 : 0次 | 上传用户:wangxiaohong75
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  Wage inequality has attracted wide attention in recent years.In this paper, we explore how much globalisation explains the inter-industry wage differentials by using a twostage estimation approach.Different from previous literature on the case of China, we take the advantage of a unique household survey dataset, China General Social Survey(CGSS) and estimate the wage premium for each industry conditioning on a rich set of individual specific and job characteristics for 2003, 2005, 2006, 2008 and 2010, when China experienced fast pace of globalisation after joining the WTO.The empirical results show that workers industry affiliation contributes up to 4.4% of the variation in wages, which is substantially different from the results without controlling for individual and job characteristics.After investigating conditional wage inequality, this paper relates wage premiums to globalisation related variables at industry level.To be specific, we consider two kinds of measures of globalisation, trade openness and capital openness.Our main findings suggest that there is no significant relationship between the overall trade openness and wage premium.However, the disaggregation shows that import of final goods decreases wage premium significantly and final export increases wage premiumsignificantly.We also find positive effect of capital openness on industrial wage premium.The empirical results also indicate that globalisation tends to reduce the wage inequality across industries.However, from the perspective of skill composition, final export and capital openness is associated with widening industry skill premiumwhereas final import tends to reduce such inequality.
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