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How are wages set in Beijing

José de Sousa () and Sandra Poncet ()

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: China's export performance over the past fifteen years has been phenomenal. Is this performance going to last? Wages are rising rapidly but a population in excess of one billion represents a large reservoir of labor. Firms in export-intensive provinces may draw on this reservoir to increase competition in their labor market and keep wages low for many years to come. We develop a wage equation from a New Economic Geography model to capture the upward pressure from national and international demand and downward pressure from migration. Using panel data at the province level, we find that migration has moderately slowed down Chinese wage increase over the period 1995-2007.

Keywords: Wages; China; Migration; Economic geography (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-hrm, nep-lab and nep-tra
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00633752
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Published in Regional Science and Urban Economics, Elsevier, 2011, 41 (1), pp.9-19. ⟨10.1016/j.regsciurbeco.2010.07.004⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00633752

DOI: 10.1016/j.regsciurbeco.2010.07.004

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