Wage Differentials between Public and Nonpublic Sector in China
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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.
JOUR
Yin, Zhichao
Gan, Li
2009
Jingji Yanjiu/Economic Research Journal
44
4
129-140
05779154
680