Privatization and Enterprise Wage Structures During Transition: Evidence from Rural Industry in China

30 Pages Posted: 4 Jan 2003

See all articles by Samuel P. S. Ho

Samuel P. S. Ho

University of British Columbia (UBC) - Department of Economics

Xiao-Yuan Dong

University of Winnipeg

Paula Bowles

University of Northern British Columbia

Fiona MacPhail

University of Northern British Columbia

Abstract

Wage structures in transition economies usually diverge significantly from their centrally-planned predecessors. Using a matched sample of employees and enterprises, we examine the effects of privatization on wage structures in rural industry in two provinces of China. We find that privatization was associated with increased wage and earnings inequality. We report increased returns to education, increased returns to experience for mid-age workers, and increases in gender wage discrimination. We find these aspects of wage structures are similar in different types of private ownership emerging from the reform process.

JEL Classification: P31, P23, P26, J31

Suggested Citation

Ho, Samuel P. S. and Dong, Xiao-Yuan and Bowles, Paula and MacPhail, Fiona, Privatization and Enterprise Wage Structures During Transition: Evidence from Rural Industry in China. The Economics of Transition, Vol. 10, No. 3, pp. 659-688, 2002. Available at SSRN: https://ssrn.com/abstract=342546

Samuel P. S. Ho (Contact Author)

University of British Columbia (UBC) - Department of Economics ( email )

997-1873 East Mall
Vancouver, BC V6T 1Z1
Canada

Xiao-Yuan Dong

University of Winnipeg ( email )

Winnipeg, Manitoba R3B 2E9
Canada

Paula Bowles

University of Northern British Columbia ( email )

3333 University Way
Prince George, B.C. V29 4Z9
Canada

Fiona MacPhail

University of Northern British Columbia ( email )

3333 University Way
Prince George, B.C. V29 4Z9
Canada

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