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Explaining the state-owned enterprise wage premium in China

Is it unobserved heterogeneity

Bibliographic Data

ID13119263
AuthorsQian Sun (0000-0001-8556-2464, McGill University, corresponding author)
Year2018
Volume6
Issue2
Pages135-157
Publication date2018-04-03
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic and Political Studies (JOURNAL)
Journal identifiersISSN: 2470-4024 • E-ISSN: 2095-4816
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/20954816.2018.1463477
OpenAlexW2805783164
LanguageEN
Citations received2
References cited27

State-owned enterprises (SOEs) in China pay higher wages than private firms. Is it because SOEs pay their workers wage premium or because they employ high-quality workforce? Using the latest methods and data, this paper accounts for the unobserved heterogeneity and estimates the SOE wage premium for the period 1995–2013. It is found that the wage premium has diminished since 1995 and has become insignificant since 2000. The significant wage gap between SOEs and non-SOEs can be explained by the fact that SOEs recruit high-quality workforce in correlation with SOEs’ industrial composition. This paper also evaluates the instruments used in the previous studies and rejects them through validity tests. The evidence suggests that the labour market in China is not segmented by ownership

Business · China · Economics · Labour economics · Quality (philosophy · Wage · Workforce · China's Socioeconomic Reforms and Governance · Fiscal Policy and Economic Growth · Global trade and economics

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Unique citing works2
Citations per year0,4
Citation span2021 - 2023 (3)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 2

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