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Formal and Informal Employment in Urban China: Income Differentials

Guifu Chen and Shigeyuki Hamori
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Guifu Chen: Xiamen University

Chapter Chapter 7 in Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, 2014, pp 77-96 from Springer

Abstract: Abstract This study estimates the formal–informal employment hourly income differentials in urban China for the total population and by gender. The results indicate that differences between the characteristics of formal and informal employment account for a much higher percentage of the hourly income differential than discrimination in the labor market. In addition, we found that ignoring the sample selection bias results in an overestimation of the formal and informal male–female hourly income differentials and the degree of discrimination against the informal employment of women—and, conversely, an underestimation of the degree of discrimination against the formal employment of women.

Keywords: Labor Market; Informal Sector; International Labor Organization; Female Employment; Sample Selection Bias (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-3-642-41109-0_7

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DOI: 10.1007/978-3-642-41109-0_7

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