What lies behind rising earnings inequality in urban China? Regression-based decompositions

CESifo Economic Studies

Volumn 55, Issue 3-4, 2009, Pages 598-623

  Deng, Quheng ^a   Li, Shi ^b  

^a CHINESE ACADEMY OF SOCIAL SCIENCES   (China)

^b BEIJING NORMAL UNIVERSITY   (China)

Author keywords

Earnings inequality; Regression based decompositions; Urban China

Indexed keywords

CONFERENCE PROCEEDING; DECOMPOSITION ANALYSIS; GENDER ROLE; HOUSEHOLD INCOME; INCOME DISTRIBUTION; OCCUPATION; REGRESSION ANALYSIS; RETURNS TO EDUCATION; SAVINGS; URBAN ECONOMY; WAGE DETERMINATION; WAGE GAP;

ASIA; CHINA; EURASIA; FAR EAST;

EID: 70849087814     PISSN: 1610241X     EISSN: None     Source Type: Journal    
DOI: 10.1093/cesifo/ifp015     Document Type: Conference Paper

References (37)

1. Bourguignon, F., M. Fournier and M. Gurgand (2001), "Fast Development with a Stable Income Distribution: Taiwan, 1979-94", Review of Income and Wealth 47, 139-63.
2. Bourguignon, F. and F.H.G. Ferreira (2005), "Decomposing Changes in the Distribution of Household Incomes: Methodological Aspects, in François Bourguignon", in F. H. G. Ferreira and N. Lustig, eds., The Microeconomics of Income Distribution Dynamics in East Asia and Latin America,World Bank and Oxford University Press, New York, pp. 17-46.
3. Chen, Y., S. Démurger and M. Fournier (2005), "Earnings Differentials and Ownership Structure in Chinese Enterprises", Economic Development and Cultural Change 53, 933-58.
4. Démurger, S., M. Fournier, S. Li and Z. Wei (2006), "Economic Liberalization with Rising Segmentation in China's Urban Labor Market", Asian Economic Papers 5, 58-101.
5. Démurger, S., M. Fournier and Y. Chen (2007), "The Evolution of Gender Wage Gaps and Discrimination in Urban China: 1988-95", The Developing Economies 45, 97-121.
6. Eichen, M. and M. Zhang (1993), "The 1988 Household Sample Survey - Data Description and Availability", in K. Griffin and R. Zhao, eds., The Distribution of Income in China, Macmillan Press, London, pp. 331-46.
7. Fields, G. (1998), "Accounting for Differences in Income Inequality", mimeo, Cornell University.
8. Gustafsson, B. and S. Li (2001), "The Anatomy of Rising Earnings Inequality in Urban China", Journal of Comparative Economics 29, 118-35.
9. Gustafsson, B. and S. Li (2000), "Economic Transformation and the Gender Earnings Gap in Urban China", Journal of Population Economics 13, 305-29.
10. Gustafsson, B., S. Li, L. Nivorozhkina and K. Katz (2003), "Rubles and Yuan: Wage Functions for Urban China and Russia at the End of the 80s", Economic Development and Cultural Change 50, 1-17.
11. Juhn, C., K. Murphy and B. Pierce (1991), "Accounting for the Slowdown in Black-White Wage Convergence", in M. Kosters, ed., Workers and Their Wages: Changing Patterns in the United States, American Enterprise Institute Press, Washington, pp. 107-43.
12. Khan, A. and C. Riskin (2005), "Household Income and its Distribution in China, 1995 and 2002", China Quarterly 182, 356-84.
13. Khan, R.A. and C. Riskin (1998), "Income Inequality in China: Composition, Distribution and Growth of Household Income, 1988 to 1995", China Quarterly 154, 221-53.
14. Knight, J. and L. Song (1994), "Why Urban Wages Differ in China", in K. Griffin and R. Zhao, eds., The Distribution of Income in China, Macmillan Press, London, pp. 216-84.
15. Knight, J. and L. Song (2003), "Increasing Urban Wage Inequality in China: Extent, Elements and Evaluation", Economics of Transition 11, 597-619.
16. Knight, J. and L. Song (2008), "China's Emerging Urban Wage Structure, 1995-2002", in B. Gustafsson, S. Li and T. Sicular, eds., Inequality and Public Policy in China, Cambridge University Press, Cambridge, pp. 221-42.
17. Knight, J. and L. Yueh (2006), "Job Mobility of Residents and Migrants in Urban China", in S. Li and H. Sato, eds., Unemployment, Inequality, and Poverty in Urban China, Routledge, London, pp. 236-60.
18. Knight, J., S. Li and R. Zhao (2001), "A Spatial Analysis of Wages and Incomes in Urban China: Divergent Means, Convergent Inequality", in C. Riskin, R. Zhao and S. Li, eds., China's Retreat from Equality: Income Distribution and Economic Transition, M.E. Sharpe, New York, pp. 133-66.
19. Lai, D. (1999), "Education, Labor Markets and Income Distribution", in R. Zhao and K. Griffin, eds., Research on Household Income Distribution in China, Publishing House of Chinese Social Sciences, Beijing, pp. 451-74 (in Chinese).
20. Li, S. (2003), "Literature Review on Income Distribution in China: Retrospect and Prospect", Economics (Quarterly) 2, 379-40 (in Chinese).
21. Li, S. and B. Gustafsson (2008), "Unemployment, Earlier Retirement and Changes in the Gender Income Gap in Urban China, 1995-2002", in B. Gustafsson, S. Li and T. Sicular, eds., Inequality and Public Policy Cambridge University Press, Cambridge, pp. 242-66.
22. Li, S. and S. Ding (2003), "Changes in Returns to Education in Urban China", China Social Sciences 144, 58-72 (in Chinese).
23. Li, S. and L. Travers (1994), "Estimates of Returns to Education in China", in R. Zhao and K. Griffin, eds., Research on Household Income Distribution in China, Publishing House of Chinese Social Sciences, Beijing (in Chinese).
24. Li, S. and Y. Wang (2005), "Empirical Analysis of the Earnings Gap between Eastern and Western Regions in China", Management World, 2005-6, 16-26 (in Chinese).
25. Li, S. and Y. Zhao (2003), "The Decline of In-kind Wage Payments in Urban China", Journal of Chinese Economic and Business Studies 1, 245-58.
26. Liu, P.-W., X. Meng and J. Zhang (2000), "Sectoral Gender Wage Differentials and Discrimination in the Transitional Chinese Economy", Journal of Population Economics 13, 331-52.
27. Meng, X. and M. P. Kidd (1997), "Labor Market Reform and the Changing Structure of Wage Determination in China's State Sector during the 1980s", Journal of Comparative Economics 25, 403-21.
28. Morduch, J. and T. Sicular (2002), "Rethinking Inequality Decomposition, with Evidence from Rural China", Economic Journal 112, 93-106.
29. National Bureau of Statistics (2005), China Statistical Yearbook, China Statistical Press, Beijing.
30. Shorrocks, F. A. (1978), "Income Inequality and Income Mobility", Journal of Economic Theory 19, 376-93.
31. Shorrocks, F. A. (1982), "Inequality Decomposition by Factor Components", Econometrica 50, 193-201.
32. Shorrocks, A. F. (1999) "Decomposition Procedures for Distributional Analysis: A Unified Framework Based on the Shapley Value", unpublished manuscript, Department of Economics, University of Essex.
33. Wan, G. (2002) "Regression-based Inequality Decomposition: Pitfalls and a Solution Procedure", WIDER Discussion Paper No. 2002/101, UNU-WIDER.
34. Wan, G. (2004), "Accounting for Income Inequality in Rural China: A Regression-based Approach", Journal of Comparative Economics 32, 348-63. Yue, X., T. Sicular, S. Li and B. Gustafsson (2008), "Explaining Incomes and Inequality in China", in B. Gustafsson, S. Li and T. Sicular, eds., Inequality and Public Policy, Cambridge University Press, Cambridge, pp. 88-117.
35. Yueh, L. (2004), "Wage Reforms in China during the 1990s", Asian Economic Journal 18, 149-64.
36. Zhang J. and Y. Zhao (2002) "Economic Returns to Schooling in Urban China, 1988-1999", Paper presented at the 5th Annual NBER-CCER Conference, June 30-July 2, Beijing, 2002.
37. Zhao, Y. (2002), "Earnings Differentials between State and Non-state Enterprises in Urban China", Pacific Economic Review 7, 181-97.