Wage Differentials between Public and Nonpublic Sector in China

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Citation

Yin, Zhichao & Gan, Li (2009). Wage Differentials between Public and Nonpublic Sector in China. Jingji Yanjiu/Economic Research Journal, 44, 129-140.

Abstract

Using CHNS data and the Heckman sample section model, we find a changing wage differential between the public sector and the nonpublic sector in China. From 1989 to 1997, wages in the public sector are 2.90% lower than the wages in the non-public sector. However, since 2000, wages in the public sector are 13.48% higher than ones in the non-public sector, and the gap is increasing over time. We also find that wages differ even within the public sector: wages in the government are 8.22% lower than wages in other jobs in the public sector. Furthermore, the wage returns in education and in experience are higher in the non-public sector than in the public sector. These newly found wage patterns are potentially useful in considering income redistribution in China.

URL

https://auth.lib.unc.edu/ezproxy_auth.php?url=http://search.ebscohost.com/login.aspx?direct=true&db=ecn&AN=1091658&site=ehost-live&scope=site
http://www.erj.cn/en/IssueInfo.aspx?m=20110331140326187971

Reference Type

Journal Article

Year Published

2009

Journal Title

Jingji Yanjiu/Economic Research Journal

Author(s)

Yin, Zhichao
Gan, Li