Do Occupational Regulations Increase Earnings? Evidence from China

31 Pages Posted: 9 Mar 2017

See all articles by Wei Chi

Wei Chi

Tsinghua University

Morris M. Kleiner

University of Minnesota - Twin Cities - Hubert H. Humphrey Institute of Public Affairs; National Bureau of Economic Research (NBER)

Xiaoye Qian

Sichuan University - Business School

Date Written: April 2017

Abstract

We examine the influence of occupational certification and licensing in China. In the empirical analysis, we find that licensing is associated with an average of 15 percent higher wages and certification with a 13–14 percent higher wage based on ordinary least squares estimates. However, using propensity score and instrumental variable estimates suggests that part of the positive effect of certification on wages is due to self‐selection. In addition, the characteristics of a certificate or license, such as the type and quantity, further influence wage determination in China.

Suggested Citation

Chi, Wei and Kleiner, Morris M. and Qian, Xiaoye, Do Occupational Regulations Increase Earnings? Evidence from China (April 2017). Industrial Relations: A Journal of Economy and Society, Vol. 56, Issue 2, pp. 351-381, 2017. Available at SSRN: https://ssrn.com/abstract=2929376 or http://dx.doi.org/10.1111/irel.12176

Wei Chi (Contact Author)

Tsinghua University ( email )

Haidian District
Beijing, Beijing 100084
China

Morris M. Kleiner

University of Minnesota - Twin Cities - Hubert H. Humphrey Institute of Public Affairs ( email )

and the Industrial Relations Center
Minneapolis, MN 55455
United States
612-625-2089 (Phone)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Xiaoye Qian

Sichuan University - Business School ( email )

China

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