Chi, Wei and Li, Bo (2012): Trends in China’s gender employment and pay gap: estimating gender pay gaps with employment selection.
Download (579kB) | Preview
In contrast to the United States and European countries, China has witnessed a widening gender pay gap in the past two decades. Nevertheless, the size of the gender pay gap could still be underestimated as a result of not accounting for the low-wage women who have dropped out of the labor force. As shown by a large and representative set of household survey data in China, since the 1980s the female employment rate has been falling and the gap between male and female employment rates has been increasing. We estimate the bounds of the raw gender pay gap in China, taking into consideration the different male and female employment rates. To tighten the bounds, we use an instrumental variable, having a child aged less than 6 years. The results support the view that the raw gender pay gap, as large as it has been, is still underestimated.
|Item Type:||MPRA Paper|
|Original Title:||Trends in China’s gender employment and pay gap: estimating gender pay gaps with employment selection|
|Keywords:||Gender pay gap; gender employment gap; bounds; instrumental variable|
|Subjects:||J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs|
|Depositing User:||Wei Chi|
|Date Deposited:||22. Oct 2012 14:38|
|Last Modified:||25. Apr 2015 21:15|
Adamchik, Vera A., Bedi, Arjun S. Gender pay differentials during the transition in Poland. Economics of Transition 2003; 11(4); 697-726.
Albrecht, James, van Vuuren, Aico, and Vroman, Susan. Counterfactual distributions with sample selection adjustments: Econometric theory and an application to the Netherlands. Labour Economics 2009; 16; 383-396.
Appleton, S., Song, L. N., Xia, Q. J. Has China crossed the river? the evolution of wage structure in urban china during reform and retrenchment. Journal of Comparative Economics 2005; 33; 644-663.
Becker, Gary S. 1957. The Economics of Discrimination. Chicago, University of Chicago Press.
Beblo, Miriam, Denis Beninger, Anja Heinze, and Francois Laisney. Measuring selectivity-corrected gender wage gaps in the EU. ZEW Discussion Paper no. 03-74, 2003, Centre for European Economic Research, Mannheim.
Blau, Francine D. Trends in the Well-Being of American Women, 1970–1995. Journal of Economic Literature 1998; 36(1); 112-165.
Blau, Francine D., Lawrence M. Kahn. Swimming Upstream: Trends in the Gender Wage Differential in the 1980s. Journal of Labor Economics 1997; 15(1);1-42.
Blau, Francine D., and Lawrence M. Kahn. The U.S. Gender Pay Gap in the 1990s: Slowing Convergence. Industrial and Labor Relations Review 2006;60(1);45-66.
Blundell, Richard, Amanda Gosling, Hidehiko Ichimura, and Costas Meghir. Changes in the distribution of male and female wages accounting for employment composition using bounds. Econometrica 2007; 75(2); 323-363.
Bollinger, Christopher, James P. Ziliak, and Kenneth R. Troske. Down from the Mountain: Skill Upgrading and Wages in Appalachia. Journal of Labor Economics 2011; 29(4); 819 - 857.
Chandra, Amitabh. Is the convergence in the racial wage gap illusory? NBER Working Paper No.9476. 2003.
Donald, S., Green, D., Paarsch, H. Differences in wage distributions between Canada and the United States: an application of a flexible estimator of distribution functions in the presence of covariates. Review of Economic Studies2000; 67(4); 609-633.
Glinskaya, E., Mroz, T. A. The gender gap in wages in Russian from 1992 to 1995. Journal of Population Economics 2000;13(2); 353-386.
Gustafsson, B., Li, Shi. Economic transformation and the gender earnings gap in urban China. Journal of Population Economics 2000;13(2); 305-329.
Hunt, J. The transition in East Germany: when is a ten-point fall in the gender wage gap bad news? Journal of Labor Economics 2002; 20(1); 148-169.
Jolliffe, D., Campos, N. F. Does market liberalization reduce gender discrimination? Econometric evidence from Hungary, 1986-1998. Labour Economics 2005;12(1);1-22.
Machado, Cecilia. Selection, heterogeneity and the gender wage gap. Working paper. 2010. Columbia University.
Machado, José A.F., Mata, José. Counterfactual decomposition of changes in wage distributions using quantile regression. Journal of Applied Econometrics 2005; 20; 445-465.
Mulligan, Casey B., Yona Rubinstein. Selection, investment, and women’s relative wages over time. Quarterly Journal of Economics 2008; 123(3);1061–1110.
Neal, Derek. The measured black-white wage gap among women is too small. Journal of Political Economy 2004; 112 (February);S1–S28.
Orazem, Peter F., Vodopivec, Milan. Male-female differences in labor market outcomes during the early transition to market: The cases of Estonia and Slovenia. Journal of Population Economics 2000; 13(2); 283-303.
Olivetti, Claudia, Barbara Petrongolo. Unequal pay or unequal employment? A cross-country analysis of gender gaps. Journal of Labor Economics 2008;26(4); 621-653.
Picchio, Matteo, Mussida, Chiara. Gender wage gap: A semi-parametric approach with sample selection correction. Labour Economics 2011;18; 564-578.
Reilly, Barry. The gender pay gap in Russia during the transition, 1992-96. Economics of Transition 1999;7(1); 245-64.