Wage flexibility in the Chinese labour market, 1989–2009

Lili Kang and Fei Peng

Regional Studies, 2017, vol. 51, issue 4, 616-628

Abstract: Wage flexibility in the Chinese labour market, 1989–2009. Regional Studies. China’s bureaucratic wage determination system is gradually being replaced by a market-based system, leading to a novel version of a dual labour market. This paper studies wage flexibility in this dual market. Its principal findings are as follows: wages in both sectors have become less responsive to changes in official registered unemployment, with an alternative market-based measure of unemployment becoming more relevant; there is evidence of convergence of flexibility between the two sectors; the wages of women exhibit greater flexibility than those of men; and there is evidence of differences in wage flexibility between workers who have urban residential rights and rural migrants.

Date: 2017
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Working Paper: Wage Flexibility in Chinese Labor Market 1989-2009 (2013)
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DOI: 10.1080/00343404.2016.1177173

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