The Effects of Market Liberalization on the Relative Earnings of Chinese Women

53 Pages Posted: 7 Jun 2002

See all articles by Margaret Maurer-Fazio

Margaret Maurer-Fazio

Bates College - Department of Economics; IZA Institute of Labor Economics

James W. Hughes

Bates College - Department of Economics

Date Written: March 2002

Abstract

In this paper we first explore the effects of differences in labor market institutions and the degree of market liberalization on the size and composition of gender wage gaps in China's urban labor markets. We use enterprise-ownership type, enterprise age, and workers' methods of finding employment as proxies for the extent of market liberalization. We find both the size of the wage gaps and the proportion of the gap left unexplained by differences in productive characteristics largest in the most liberalized (joint venture) sector, and smallest in the least liberalized (state) sector. We next investigate the effects of differences in wage structure on the gender wage gaps. We find that differences in wage structure, in general, and the degree of wage dispersion, in particular, are extremely important in accounting for the larger wage gaps in the joint venture and collective sectors relative to the state-owned sector.

Keywords: China, gender wage gap, labor, market liberalization, earnings

JEL Classification: J16, J31, J71, O15, O53, P23

Suggested Citation

Maurer-Fazio, Margaret and Hughes, James Wesley, The Effects of Market Liberalization on the Relative Earnings of Chinese Women (March 2002). William Davidson Institute Working Paper Number 460. Available at SSRN: https://ssrn.com/abstract=313190 or http://dx.doi.org/10.2139/ssrn.313190

Margaret Maurer-Fazio (Contact Author)

Bates College - Department of Economics ( email )

276 Pettengill Hall
4 Andrews Road
Lewiston, ME 04240
United States
207-786-6087 (Phone)
207-786-8338 (Fax)

IZA Institute of Labor Economics

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

James Wesley Hughes

Bates College - Department of Economics ( email )

Lewiston, ME 04240
United States

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