Industrial Segregation and Wage Gaps between Migrants and Local Urban Residents in China:2002-2013

Xinxin Ma, 欣欣 馬 and Shi Li

No 2016-4, CEI Working Paper Series from Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University

Abstract: This paper explores industrial segregation and its impact on the wage gaps between rural-to-urban migrants and local urban residents in China. Using the Chinese Household Income Project (CHIP) 2002 and 2013 surveys, we analyzed the probabilities of entry to various industries for both migrant and local urban resident groups; using the model of Brown et al. (1980), we then undertook a decomposition analysis of the wage gaps. Several major conclusions emerge. First, although inter-industry differentials and intra-industry differentials both affect the wage gap between migrants and local urban residents, the effect of intra-industrial differentials is greater in both 2002 and 2013. Second, in considering the effect of intra-industry differentials, while the influence of explained differentials is greater than that of unexplained differentials in both 2002 and 2013, the influence of the unexplained component of the intra-industrial differentials rises steeply from 19.4% (2002) to 68.0% (2013). The results show that when other factors are held constant, the problem of discrimination against migrants in a given industry is becoming more serious. In addition, the influence of the explained component of the intra-industry differentials rises from 61.2% (2002) to 77.7% (2013).

Keywords: industrial segregation; wage gaps; migrants; local urban residents; urban China (search for similar items in EconPapers)
JEL-codes: J16 J24 J42 J71 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2016-05
New Economics Papers: this item is included in nep-lma, nep-net, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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