Earnings mobility during labor market reforms in urban China

Gary S. Fields, Xin Meng and Yang Song

China Economic Review, 2022, vol. 75, issue C

Abstract: This paper provides empirical evidence on patterns of earnings mobility for China for the 2000s and before to study how the labor market reform in the late 1990s affects individuals' earnings mobility. We find convergent earnings mobility in the 1990s but clearly divergent earnings mobility in the 2000s, meaning that those with the highest earnings to begin with experienced the largest earnings gains after 2000. Policies would be desirable such as compensating low-skill workers by establishing government-initiated training programs. More generally, welfare policies are necessary to help disadvantaged workers avoid from low-income or poverty traps who suffer from negative shocks in market-oriented reforms.

Keywords: Earnings mobility; Inequality; Labor market reforms; China (search for similar items in EconPapers)
JEL-codes: D63 J31 O15 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:75:y:2022:i:c:s1043951x22001018

DOI: 10.1016/j.chieco.2022.101843

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