Munich Personal RePEc Archive

Real wage cyclicality in urban China

Kang, Lili and Peng, Fei (2010): Real wage cyclicality in urban China. Published in: Economics Letters , Vol. 115, No. 2 (2012): pp. 141-143.


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This paper investigates the cyclical behaviour of real wages in urban China using the China Health and Nutrition Survey (CHNS) 1989-2006. Using changes in the unemployment rate as the cyclical measure, we find pro-cyclicality in the public sector and small/medium firms, but not in big firms. We also find real wages of male, high educated or ever married workers are flexible. Including bonuses increases the pro-cyclicality of regular wages.

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