Open AccessA Study of Determination in Chinese Peasant Workers’ Wage: The Role of Human Capital and Market Segmentation
Author(s) -
Hengyou Sun
Publication year - 2012
Publication title -
international journal of business administration
Language(s) - English
Resource type - Journals
eISSN - 1923-4015
pISSN - 1923-4007
DOI - 10.5430/ijba.v3n4p31
Subject(s) - peasant , human capital , wage , prosperity , labour economics , labor market segmentation , marketization , economics , monopoly , estimation , china , market economy , economic growth , political science , management , law
The result of OLS estimation indicates that peasant workers’ wage will increase by about 6.1% when education increases 1 year, and the wage increase of those who experienced professional training is about 15.7% more than those who not. After controlling other variables, industry monopoly not only brings minority’s prosperity but also majority’s poverty. Both human capital effect and labor market segmentation effect are enhanced obviously by Chinese marketization process. The conclusions imply that strengthening education and training and eliminating labor market segmentation will be very important policy to improve peasant workers’ wage. This paper also finds that none of the years of parental schooling, the numbers of brothers and sisters and the types of investigated area is an ideal IV when dealing with endogenous educational issues