Changes in China's wage structure

Arbeitspapier

Using a national sample of Urban Household Surveys, we document several profound changes in China's wage structure during a period of rapid economic growth. Between 1992 and 2007, the average real wage increased by 202 percent, accompanied by a sharp rise in wage inequality. Decomposition analysis reveals 80 percent of this wage growth to be attributable to higher pay for basic labor, rising returns to human capital, and increases in the state-sector wage premium. Employing an aggregate production function framework, we account for the sources of wage growth and wage inequality in the face of globalization and economic transition. We find capital accumulation, skill-biased technological change, and export expansion to be the major forces behind the evolving wage structure in China.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 6492

Classification and Topics

• Classification: Wirtschaft ; Wage Level and Structure; Wage Differentials ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Economic Growth and Aggregate Productivity: General
• Subject: wage growth ; wage premium ; capital accumulation ; trade expansion ; technological change ; China

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Ge, Suqin ; Yang, Dennis Tao
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/58445
• URN: urn:nbn:de:101:1-2012080812352
• Last update: 10.03.2025, 11:42 AM CET