TY - JOUR
T1 - City Size and Wage Disparity in Segmented Labour Market in China
AU - Pan, Liqun
AU - Mukhopadhaya, Pundarik
AU - Li, Jing
PY - 2016/6/1
Y1 - 2016/6/1
N2 - The relation between city size and wage inequality is well established for Western countries. This paper finds that city size-wage premium exists across Chinese cities to a lower extent than the Western world. Further, using a simplified model on the Chinese Household Income Project survey data, we find that the city size-wage premium varies with difference in skills among urban citizens. The variation amounts to 50% more for the high-skill workers compared with their low-skill counterparts. Moreover, owing to the presence of segmented labour market, the patterns of city size-wage premium and city size-wage inequality premium are notably different for the migrants, who receive a much lesser wage than the citizens and do not experience wage variation owing to their skill heterogeneity.
AB - The relation between city size and wage inequality is well established for Western countries. This paper finds that city size-wage premium exists across Chinese cities to a lower extent than the Western world. Further, using a simplified model on the Chinese Household Income Project survey data, we find that the city size-wage premium varies with difference in skills among urban citizens. The variation amounts to 50% more for the high-skill workers compared with their low-skill counterparts. Moreover, owing to the presence of segmented labour market, the patterns of city size-wage premium and city size-wage inequality premium are notably different for the migrants, who receive a much lesser wage than the citizens and do not experience wage variation owing to their skill heterogeneity.
UR - http://www.scopus.com/inward/record.url?scp=84963823309&partnerID=8YFLogxK
U2 - 10.1111/1467-8454.12065
DO - 10.1111/1467-8454.12065
M3 - Article
VL - 55
SP - 128
EP - 148
JO - Australian Economic Papers
JF - Australian Economic Papers
SN - 0004-900X
IS - 2
ER -