Formal Employment, Informal Employment and Income Differentials in Urban China

Guifu Chen and Shigeyuki Hamori

MPRA Paper from University Library of Munich, Germany

Abstract: Oaxaca’s study (1973), along with the China Health and Nutrition Survey (CHNS) questionnaire (2004 and 2006 pooling data), is used as the basis for this study in estimating the formal-informal employment hourly income differential, as well as the formal and informal male-female employment hourly income differential in urban China. The results indicate that differences in the characteristics between formal and informal employment account for a much higher percentage of the hourly income differential than do discrimination. In addition, ignoring the sample selection bias, one finds the formal male-female, the informal male-female hourly income differential and the degree of discrimination against informal women’s employment will be overestimated; conversely, the degree of discrimination against formal women’s employment will be underestimated.

Keywords: formal employment; informal employment; income differentials; Chinese labor market (search for similar items in EconPapers)
JEL-codes: J40 J70 (search for similar items in EconPapers)
Date: 2009-09
New Economics Papers: this item is included in nep-dev, nep-lab and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:17585

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