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| 1 |
ID:
147433
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| Summary/Abstract |
Our paper reconciles the debated literature on the role of the Chinese unions by exploring the heterogeneous effects of unionization on wages in firms with and without political connections. We utilize a survey of 1268 firms in 12 cities to verify our hypothesis that wages increase due to unionization, but this union wage effect is significantly depressed by firms' political connections. Through a detailed analysis of the mechanism behind the empirical results, we conclude that unions increase workers' wages by strengthening the bargaining power of workers, while this bargaining power can be weakened by firms' political connections. Our main conclusion is robust to a series of robustness checks. Moreover, the results from quantile regressions inform us that the union wage effect and the role of political connections may vary along with the firms' wage distribution. Our findings suggest that the solution to further increase wages for low-wage workers and reduce wage inequality is to make the labor union an independent organization which can freely bargain with firms in terms of workers' wages and benefits, rather than an agency subordinate to the government whose role can be affected by the government support and undermined largely by firms' political connections.
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| 2 |
ID:
149764
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We examined gender differences in performance-based pay in an institute of a top Chinese university, to provide insight into the gender earnings gap. We found that male professors earned more from research and less from teaching than did comparable female professors even though male and female professors showed no statistically significant difference in the total performance-based pay. Given the piece rate nature of bonuses in the institute and one's tendency to invest more time in areas where one has comparative advantages to maximize the total income, the study results lead to the conclusion that male professors displayed comparative advantage in research while female professors exhibited comparative advantage in teaching. The conclusion is corroborated by analyses of time allocation, and number of papers published as first author and as co-author.
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| 3 |
ID:
168345
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This paper offers one of the first pieces of empirical evidence on the impact of inequality of opportunity on household education investment by using the panel data from China Family Panel Studies (CFPS) in three waves (2010, 2012 and 2014). Our result suggests that inequality of opportunity has a negative effect on household education expenditures. This result is robust to a series of robustness checks. Furthermore, for relatively disadvantaged households (household heads with less education, income, or rural hukou status), inequality of opportunity has a larger negative effect on their education expenditures. Policy suggestions to lower inequality of opportunity may include reducing labor market discrimination based on gender and hukou status, balancing education resources to create more equal educational opportunities, and offering children education subsidies in low-income families.
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| 4 |
ID:
161846
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| Summary/Abstract |
In the past few decades, the Chinese Ministry of Education has promoted “suzhi jiaoyu” (quality education) reforms. However, little is known about their impact. This paper evaluates an important component of the reforms that replaces using total scores with a letter grade system in high school admissions. I find that this change in student performance measurement achieved its intended goal of balancing learning across subjects but hindered high achievers with imbalanced performance. This paper also discusses how the measurement reform influenced the gender gap in achievements.
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| 5 |
ID:
111486
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2012.
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| Summary/Abstract |
Using the instrumental variable model and the regression discontinuity approach, this paper explores how access to primary education affects the Chinese labor market and helps people to escape poverty. Several important findings are obtained. The popularization of primary education has significantly reduced poverty in China, especially in urban areas. In contrast, the Compulsory Education Law has not been well implemented for older children in rural areas. In addition, the labor market premium for completing primary education is much larger in urban areas than in rural areas. Poor rural school quality might explain this rural-urban disparity. Effort needs to be made to further reduce poverty by ensuring adequate financial resources for primary education in poor areas and improving school quality in rural China.
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| 6 |
ID:
124563
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2013.
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| Summary/Abstract |
This article examines the quantitative effects of the Chinese fiscal system on the increasing regional income inequality in China, from 1978 to 2007. Fiscal decentralization is a multifaceted concept not likely to be captured by a single measure. This paper investigates the evolution of three aspects of fiscal decentralization including spending decentralization, revenue decentralization, and autonomy power, and tests the effects of each aspect on the regional income inequality in China in the past thirty years. Several critical findings were obtained through econometric analysis. The fiscal decentralization on spending side in China has contributed to rising income inequality over the last three decades. On the revenue side, the fiscal system became more decentralized from mid-1980s to 1994, and re-centralized after the 1994 tax sharing reform. The econometric analysis shows that the increase in revenue share of local governments from mid-1980s to 1994 indeed increased regional inequality, while the revenue re-centralization in 1994 only had a modest effect on reducing regional inequality. In terms of autonomy power measured by how public spending at local level of government is maintained by its own revenue, the degree of fiscal decentralization decreased since mid-1980s, and experienced a sharp reduction in 1994 due to the tax sharing reform. The autonomy power has mixed effects on regional inequality in the two periods, before and after the 1994 reform, depending on the targeting of fiscal transfers and the incentives of local governments. As it turns out, fiscal decentralization may not be automatically equalizing or anti-equalizing, whereas how fiscal decentralization is promoted is important for how it impacts regional inequality.
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| 7 |
ID:
133197
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2014.
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| Summary/Abstract |
This article explains the current hukou system in China and provides the most recent evidence on the impact of the hukou system on the Chinese labor market and economy. By a comprehensive literature survey, this paper shows that the hukou system plays in two major roles in current China. First, workers with different hukou face different costs of living in cities and have different access to government-provided public services and welfare programs in the urban areas. Migrants with rural and non-local hukou working in the Chinese big cities have no or little access to welfare programs provided by local city governments. Second, there exists labor market discrimination against rural hukou holders in cities, especially in the urban high-wage sector such as state-owned enterprises. The current hukou system has a negative impact on rural-to-urban migration in China as well as on economic efficiency and equality by reducing the expected benefits associated with migration.
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