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The wage structure and gap between public and private sectors

An empirical study in urban China

Bibliographic Data

ID15068071
AuthorsMingming Li (0000-0002-4681-358X, Central European University, corresponding author), Fumei Zhang (0000-0002-0810-6331, Corvinus University of Budapest)
Year2023
Volume36
Issue2
Publication date2023-07-10
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomic Research-Ekonomska Istraživanja (JOURNAL)
Journal identifiersISSN: 1331-677X • E-ISSN: 1848-9664
PublisherInforma UK Limited (PUBLISHER • GB)
DOI10.1080/1331677x.2022.2106276
OpenAlexW4290988423
LanguageEN
Citations received3
References cited40

The idea that the wage gap (W.G.) between the public sector (P.U.S.) and private sectors (P.R.S.) has widened is a point of contention among scholars, but to date, there has been no systematic discussion of changes in the W.G. and their causes in China. This article combines data from China's Urban Household Survey (U.H.S.) for 2004, 2008 and 2013 to examine changes in betweensector W.G.s and identify the causal factors by wage decomposition methods. Using ordinary least squares and a Heckman sample selection model, this study finds that public-sector workers consistently earn more than private-sector workers and that the W.G. is expanding, especially in upstream industries where stateowned enterprises (S.O.E.s) have monopoly status. In addition, the Oaxaca-Blinder (O.B.) decomposition method is adopted to reveal that the characteristic effect is the main cause of the W.G. Further, the regression and decomposition of the recentered influence function show that the effect of characteristics and coefficient effects differ across wage quantiles. This article indicates that the intersectoral W.G. in China is widening mainly as a result of differences in labour endowments and provides evidence to support government decision-making

China · Demographic economics · Economic growth · Economics · Economy · Empirical research · Geography · Labour economics · Private sector · Public sector · Wage · China's Socioeconomic Reforms and Governance · Migration, Ethnicity, and Economy · Regional Economics and Spatial Analysis

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Unique citing works3
Citations per year1,5
Citation span2024 - 2025 (2)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 1

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