Differential Rewards to, and Contributions of, Education in Urban China's Segmented Labor Markets

17 Pages Posted: 3 Nov 2004

See all articles by Margaret Maurer-Fazio

Margaret Maurer-Fazio

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

Ngan Dinh

University of Chicago - Division of Social Sciences

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Abstract

Using worker data from a 1999-2000 urban enterprise survey, we examine the effects of education on the current earnings of continuously employed urban workers, migrants and laid off but subsequently re-employed workers. We also decompose the earnings differentials between each of these groups of workers and then assess the contribution of education to explanations of the differentials. The empirical results demonstrate that returns to education increase with marketization and competition in the workplace. We also find educational attainment to be an important explanator of the earnings differentials between institutionally differentiated groups of workers in China's urban labor markets.

Suggested Citation

Maurer-Fazio, Margaret and Dinh, Ngan, Differential Rewards to, and Contributions of, Education in Urban China's Segmented Labor Markets. Pacific Economic Review, Vol. 9, No. 3, pp. 173-189, October 2004. Available at SSRN: https://ssrn.com/abstract=611199

Margaret Maurer-Fazio (Contact Author)

Bates College - Department of Economics ( email )

276 Pettengill Hall
4 Andrews Road
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207-786-6087 (Phone)
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IZA Institute of Labor Economics

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

Ngan Dinh

University of Chicago - Division of Social Sciences ( email )

774 International House
1414 East 59th Street
Chicago, IL 60637
United States

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