Gender Wage-Productivity Differentials and Global Integration in China

32 Pages Posted: 2 Feb 2013

See all articles by Ana Dammert

Ana Dammert

McMaster University; IZA Institute of Labor Economics

Beyza P. Ural Marchand

University of Alberta - Faculty of Arts

Chi Wan

University of Massachusetts Boston - Department of Accounting and Finance

Abstract

In the absence of discrimination, there should be no wage-productivity differentials as relative wages should be equal to the relative marginal productivity levels of workers. This paper investigates the role of globalization on the structure and evolution of gender differentials in China by simultaneously estimating demand-side wage and productivity outcomes using nonlinear least squares. The analyses are based on a comprehensive population-wide panel survey of manufacturing firms between the years of 2004 and 2007, covering 94 percent of total industry output and providing an accurate representation of labor demand. The results suggest that more exposure to globalization through increased exports is associated with lower gender wage-productivity differentials, and more exposure through increased foreign investment leads to differentials in favor of female workers. On the other hand, gender discrimination is found to be prevalent among domestically owned and non-exporting firms.

Keywords: China, gender wage discrimination, globalization, firm ownership

JEL Classification: D22, F21, F61, J16, J31

Suggested Citation

Dammert, Ana and Ural Marchand, Beyza P. and Wan, Chi, Gender Wage-Productivity Differentials and Global Integration in China. IZA Discussion Paper No. 7159, Available at SSRN: https://ssrn.com/abstract=2210799 or http://dx.doi.org/10.2139/ssrn.2210799

Ana Dammert (Contact Author)

McMaster University ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Beyza P. Ural Marchand

University of Alberta - Faculty of Arts ( email )

Edmonton, Alberta
Canada

Chi Wan

University of Massachusetts Boston - Department of Accounting and Finance ( email )

Boston, MA 02125
United States

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