Anatomy of the Wage Gap Between Local and Migrant Workers in Urban Areas of the People’s Republic of China

Shu Cai and Xingjian Zhang ()
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Shu Cai: Institute for Economic and Social Research, Jinan University, People’s Republic of China
Xingjian Zhang: Rotman School of Management, University of Toronto, Canada

Asian Development Review (ADR), 2025, vol. 42, issue 02, 147-183

Abstract: This paper examines the wage differentials between local and migrant workers in urban areas of the People’s Republic of China. Using unique data from a survey that was designed to be representative of migrants and local residents, the study finds that, without considering differences in the distribution of job attainment, the majority of the wage gap can be explained by differences in personal characteristics. However, an examination of labor market segmentation indicates that a significant component of the cross-group wage differentials due to segmentation in jobs with different work times or tenures is unexplained by productivity-related characteristics, implying possible discrimination against migrant workers along these aspects.

Keywords: discrimination; labor market; local residents; migrant; wage gap (search for similar items in EconPapers)
JEL-codes: J31 J41 J61 J71 O15 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S0116110525500143

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