THE EVOLUTION OF GENDER EARNINGS GAPS AND DISCRIMINATION IN URBAN CHINA, 1988–95

Sylvie Démurger · Martin Fournier · Yi Chen

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Gender, Labor, and Family Dynamics Labor market dynamics and wage inequality Labour Market and Migration

Abstract

This paper analyzes the impact of market liberalization on gender earnings differentials and discrimination against women in urban China at the beginning of the 1990s. The observed stability in the overall gender earnings gap between 1988 and 1995 is shown to result from a complex set of evolutions across enterprises, earnings distributions, and time. Our results highlight the interplay of opposing forces, with economic reforms contributing to changes in managers’ behaviors in different dimensions. On the one hand, by bringing more competition, liberalization favored a reduction in discriminating behaviors in both urban collectives and foreign‐invested enterprises; on the other hand, by relaxing institutional rules, it led to a loosening of the government's egalitarian wage‐setting policies, leaving more space for discrimination in state‐owned enterprises.

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References

1973Male-Female Wage Differentials in Urban Labor Markets 1973Wage Discrimination: Reduced Form and Structural Estimates 1989Black Economic Progress after Myrdal 2000Economic transformation and the gender earnings gap in urban China 2004Spatial Price Differences in China: Estimates and Implications 2003Economic transition and returns to education in China 1988Trends in Earnings Differentials by Gender, 1971-1981 2000Sectoral gender wage differentials and discrimination in the transitional Chinese economy

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2011Earnings differentials between the public and private sectors in China: Exploring changes for urban local residents in the 2000s 2011Has China run out of surplus labour?2004Wage Reforms in China During the 1990s 2012Rebalancing and Sustaining Growth in China 2015Diverging fortunes: The evolution of gender wage gaps for singles, couples, and parents in China, 1989–2009 2004Gender Segmentation at Work in China's Privatized Rural Industry: Some Evidence from Shandong and Jiangsu

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