Wage Differentials between Public and Private Sectors in China under Economy System Transition Period: System and Empirical Study Approach

2015 Fiscal Year Final Research Report

• Project/Area Number: 25380297
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Economic policy
• Research Institution: Hitotsubashi University (2015); Kyoto University (2013-2014)
• Principal Investigator: MA Xinxin 一橋大学, 経済研究所, 准教授 (80634253)
• Research Collaborator: LI Shi 北京師範大学, 経済与工商管理学院, 教授
• Project Period (FY): 2013-04-01 – 2016-03-31
• Keywords: 賃金格差 / 国有部門 / 中国労働市場 / 賃金制度

Outline of Final Research Achievements

First, in China, during the planned economy period, the government performed a unified-management wage system, the wage levels in the whole China were controlled by the government, so the market mechanism didn’t influence the wage decision. Under the economy system transition period, the wage system was reformed, and some new wage systems such as the collective wage system were implemented. However, the total wage bill and basic wage levels in the public sector are still managed by the government. Second, the rate of international education return rose for the public sector, whereas it decreased for the private sector. Moreover, the influence of human capital differentials on the wage gap between public- and private-sectors grew greater, while the influence of unexplained differentials caused by the discriminations became smaller in this period. These results indicated that along with the marketization reform progress, the influence of market mechanism on wage decision became greater.

Free Research Field

労働経済学、中国経済論