ECONOMIC TRANSITION AND THE GENDER EARNINGS GAP IN CHINESE INDUSTRY: THE ROLE OF FIRM CHARACTERISTICS

Authors

  • LIYING LI,

    1. Li: Professor, College of Business Administration, Henan University of Technology, Zhengzhou, China 45001. Phone 011-86-136-53824648, Fax 011-86-371-67756667, E-mail liliying1968@hotmail.com
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  • XIAO-YUAN DONG

    1. Dong: Professor, Department of Economics, University of Winnipeg, Winnipeg, MB Canada R3B 2E9. Phone 204-786-9307, Fax 204-774-4134, E-mail x.dong@uwinnipeg.ca; China Center for Economic Research, Peking University, China
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    • We thank the Ford Foundation for its support of the postgraduate economic research and mentoring program for young women economists in China. We have benefited from the valuable comments of two anonymous reviewers.


Abstract

This paper analyzes the gender wage gap in the post-reform Chinese industry using a unique employer-employee matched dataset. The analysis shows that the sex-related wage premiums at the firm level account for almost all the portion of the gender wage gap that is not explained by observed personal characteristics. It is found that firms which have a larger pay gap between men and women are more likely to operate in the market with fierce competition, subject to a hard budget constraint, adopt piece rates, and have a lower degree of employees' influence. (JEL I30, J16, J21, J64, J71, O10, R20)

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