Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data

Guangtao Xia; Xinzhen Xu

doi:doi:10.11648/j.ijefm.20190706.13

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Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data

Guangtao Xia, Xinzhen Xu

Published in International Journal of Economics, Finance and Management Sciences (Volume 7, Issue 6)

Received: 14 October 2019 Published: 18 November 2019

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Abstract

In recent years, there is a substantial debate on the wage differences in China. Yet most empirical studies of wage gap concentrate only on short-run changes due to the lack of high-quality data. In this paper, we study the wage gap between urban and rural labor in China using the Chinese Health and Nutrition Survey (CHNS) data spanning several years. By the methods of OLS regression and Oaxaca decomposition we have two main findings: first, the wage gap resulting from household register discrimination have been gradually decreasing since the Lewis transition, and the growth rate of migrant workers' wages obviously exceeded the accumulation rate of their human capital in 2011; second, the wage disadvantage of the rural labor mainly comes from the weakness of its human capital, compared with that of the urban labor. These findings would remind us of the rising welfare inequality problem in China against the background that the accumulation of human capital on rural labor have slowed down after the Lewis transition. In the end, we come up with several suggestions for policy reform. First of all, the central government should distribute more educational resources into rural areas specifically. In addition, the local government and enterprises should increase specific investment in skills training for migrant workers. Last but not least, the governments ought to gradually abolish the related rules that restrain migrant workers from obtaining urban public services, which will help to equalize the social welfare in China eventually.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 7, Issue 6)
DOI	10.11648/j.ijefm.20190706.13
Page(s)	197-202
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Urban-rural Wage Gap, Lewis Transition, Household Register Discrimination

References

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[4]	Fang Cai. Demographic Transition, Demographic Dividend, and Lewis Turning Point in China. Economic Research Journal, 2010.
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[6]	Xin Meng, Junsen Zhang. The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai. Journal of Comparative Economics, 2001, 29 (3): 0-504.
[7]	Jingfang Sun. Changes to Hukou Discrimination in China’s Labor Market: Employment and Wages of Rural Migrant Workers. Economic Research Journal, 2017, 52 (08): 171-186.
[8]	Randall S. Brown, Marilyn Moon, and Barbara S. Zoloth. Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials. Journal of Human Resources, 1980, 15 (1): 3-28.
[9]	Pak-Wai Liu, Xin Meng, and Junsen Zhang. Sectoral Gender Wage Differentials and Discrimination in the Transitional Chinese Economy. Journal of Population Economics, 2000, 13 (2): 331-352.
[10]	Xin Meng. Male–female Wage Determination and Gender Wage Discrimination in China's Rural Industrial Sector. Labour Economics, 1998, 5 (1): 67-89.
[11]	Doris Weichselbaumer, Rudolf Winter‐Ebmer. A Meta-Analysis of the International Gender Wage Gap. Journal of Economic Surveys, 2005, 19 (3): 479-511.
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[17]	Ming Lu. Great State Needs Bigger City: The Unity, Development and Balance of Contemporary China, Shanghai: Shanghai people's Publishing House, 2016.

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Guangtao Xia, Xinzhen Xu. (2019). Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data. International Journal of Economics, Finance and Management Sciences, 7(6), 197-202. https://doi.org/10.11648/j.ijefm.20190706.13

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ACS Style

Guangtao Xia; Xinzhen Xu. Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data. Int. J. Econ. Finance Manag. Sci. 2019, 7(6), 197-202. doi: 10.11648/j.ijefm.20190706.13

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AMA Style

Guangtao Xia, Xinzhen Xu. Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data. Int J Econ Finance Manag Sci. 2019;7(6):197-202. doi: 10.11648/j.ijefm.20190706.13

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@article{10.11648/j.ijefm.20190706.13,
  author = {Guangtao Xia and Xinzhen Xu},
  title = {Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {7},
  number = {6},
  pages = {197-202},
  doi = {10.11648/j.ijefm.20190706.13},
  url = {https://doi.org/10.11648/j.ijefm.20190706.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20190706.13},
  abstract = {In recent years, there is a substantial debate on the wage differences in China. Yet most empirical studies of wage gap concentrate only on short-run changes due to the lack of high-quality data. In this paper, we study the wage gap between urban and rural labor in China using the Chinese Health and Nutrition Survey (CHNS) data spanning several years. By the methods of OLS regression and Oaxaca decomposition we have two main findings: first, the wage gap resulting from household register discrimination have been gradually decreasing since the Lewis transition, and the growth rate of migrant workers' wages obviously exceeded the accumulation rate of their human capital in 2011; second, the wage disadvantage of the rural labor mainly comes from the weakness of its human capital, compared with that of the urban labor. These findings would remind us of the rising welfare inequality problem in China against the background that the accumulation of human capital on rural labor have slowed down after the Lewis transition. In the end, we come up with several suggestions for policy reform. First of all, the central government should distribute more educational resources into rural areas specifically. In addition, the local government and enterprises should increase specific investment in skills training for migrant workers. Last but not least, the governments ought to gradually abolish the related rules that restrain migrant workers from obtaining urban public services, which will help to equalize the social welfare in China eventually.},
 year = {2019}
}

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TY  - JOUR
T1  - Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data
AU  - Guangtao Xia
AU  - Xinzhen Xu
Y1  - 2019/11/18
PY  - 2019
N1  - https://doi.org/10.11648/j.ijefm.20190706.13
DO  - 10.11648/j.ijefm.20190706.13
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 197
EP  - 202
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20190706.13
AB  - In recent years, there is a substantial debate on the wage differences in China. Yet most empirical studies of wage gap concentrate only on short-run changes due to the lack of high-quality data. In this paper, we study the wage gap between urban and rural labor in China using the Chinese Health and Nutrition Survey (CHNS) data spanning several years. By the methods of OLS regression and Oaxaca decomposition we have two main findings: first, the wage gap resulting from household register discrimination have been gradually decreasing since the Lewis transition, and the growth rate of migrant workers' wages obviously exceeded the accumulation rate of their human capital in 2011; second, the wage disadvantage of the rural labor mainly comes from the weakness of its human capital, compared with that of the urban labor. These findings would remind us of the rising welfare inequality problem in China against the background that the accumulation of human capital on rural labor have slowed down after the Lewis transition. In the end, we come up with several suggestions for policy reform. First of all, the central government should distribute more educational resources into rural areas specifically. In addition, the local government and enterprises should increase specific investment in skills training for migrant workers. Last but not least, the governments ought to gradually abolish the related rules that restrain migrant workers from obtaining urban public services, which will help to equalize the social welfare in China eventually.
VL  - 7
IS  - 6
ER  -

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Author Information

Guangtao Xia

PBC School of Finance, Tsinghua University, Beijing, P. R. China
Xinzhen Xu

School of Economics, Shandong University, Jinan, P. R. China

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APA Style

Guangtao Xia, Xinzhen Xu. (2019). Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data. International Journal of Economics, Finance and Management Sciences, 7(6), 197-202. https://doi.org/10.11648/j.ijefm.20190706.13

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ACS Style

Guangtao Xia; Xinzhen Xu. Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data. Int. J. Econ. Finance Manag. Sci. 2019, 7(6), 197-202. doi: 10.11648/j.ijefm.20190706.13

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AMA Style

Guangtao Xia, Xinzhen Xu. Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data. Int J Econ Finance Manag Sci. 2019;7(6):197-202. doi: 10.11648/j.ijefm.20190706.13

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@article{10.11648/j.ijefm.20190706.13,
  author = {Guangtao Xia and Xinzhen Xu},
  title = {Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {7},
  number = {6},
  pages = {197-202},
  doi = {10.11648/j.ijefm.20190706.13},
  url = {https://doi.org/10.11648/j.ijefm.20190706.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20190706.13},
  abstract = {In recent years, there is a substantial debate on the wage differences in China. Yet most empirical studies of wage gap concentrate only on short-run changes due to the lack of high-quality data. In this paper, we study the wage gap between urban and rural labor in China using the Chinese Health and Nutrition Survey (CHNS) data spanning several years. By the methods of OLS regression and Oaxaca decomposition we have two main findings: first, the wage gap resulting from household register discrimination have been gradually decreasing since the Lewis transition, and the growth rate of migrant workers' wages obviously exceeded the accumulation rate of their human capital in 2011; second, the wage disadvantage of the rural labor mainly comes from the weakness of its human capital, compared with that of the urban labor. These findings would remind us of the rising welfare inequality problem in China against the background that the accumulation of human capital on rural labor have slowed down after the Lewis transition. In the end, we come up with several suggestions for policy reform. First of all, the central government should distribute more educational resources into rural areas specifically. In addition, the local government and enterprises should increase specific investment in skills training for migrant workers. Last but not least, the governments ought to gradually abolish the related rules that restrain migrant workers from obtaining urban public services, which will help to equalize the social welfare in China eventually.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - Research on the Wage Gap Between Urban and Rural Labor: Based on CHNS Micro Survey Data
AU  - Guangtao Xia
AU  - Xinzhen Xu
Y1  - 2019/11/18
PY  - 2019
N1  - https://doi.org/10.11648/j.ijefm.20190706.13
DO  - 10.11648/j.ijefm.20190706.13
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 197
EP  - 202
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20190706.13
AB  - In recent years, there is a substantial debate on the wage differences in China. Yet most empirical studies of wage gap concentrate only on short-run changes due to the lack of high-quality data. In this paper, we study the wage gap between urban and rural labor in China using the Chinese Health and Nutrition Survey (CHNS) data spanning several years. By the methods of OLS regression and Oaxaca decomposition we have two main findings: first, the wage gap resulting from household register discrimination have been gradually decreasing since the Lewis transition, and the growth rate of migrant workers' wages obviously exceeded the accumulation rate of their human capital in 2011; second, the wage disadvantage of the rural labor mainly comes from the weakness of its human capital, compared with that of the urban labor. These findings would remind us of the rising welfare inequality problem in China against the background that the accumulation of human capital on rural labor have slowed down after the Lewis transition. In the end, we come up with several suggestions for policy reform. First of all, the central government should distribute more educational resources into rural areas specifically. In addition, the local government and enterprises should increase specific investment in skills training for migrant workers. Last but not least, the governments ought to gradually abolish the related rules that restrain migrant workers from obtaining urban public services, which will help to equalize the social welfare in China eventually.
VL  - 7
IS  - 6
ER  -

Copy | Download