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Earnings Differentials between State and Non‐State Enterprises in Urban China
Author(s) -
Zhao Yaohui
Publication year - 2002
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.00010
Subject(s) - earnings , wage , labour economics , economics , china , private sector , state (computer science) , survey data collection , demographic economics , economic growth , finance , algorithm , political science , computer science , law , statistics , mathematics
The present paper estimates earnings differentials between state and non‐state sectors for Chinese urban residents in 1996 by taking into account differences in non‐wage benefits. Household survey data are used to estimate wage differentials while aggregate statistics are utilised in estimating non‐wage benefits. We find that state‐sector workers earned significantly more than workers in urban collective and domestic private enterprises in 1996. Unskilled workers in foreign invested enterprises (FIE) earned significantly less than those in the state sector but skilled workers earned more in FIE than in the state sector. These findings shed light on the source of labour immobility that state‐owned enterprise had experienced until recently.