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ID: 149763

Hukou system reforms and skilled-unskilled wage inequality in China / Zhan, Pengqing; Pi, Jiancai

Zhan, Pengqing	Journal Article
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Summary/Abstract

In China, rural migrant workers usually cannot get fair treatment due to the hukou system. This paper investigates how hukou system reforms affect the skilled-unskilled wage inequality through the general equilibrium approach. In the basic model, we find that an increase in the strength of hukou system reforms will narrow down the wage inequality if the urban skilled sector is more capital intensive than the urban unskilled sector. In addition, we separately extend the basic model by introducing the endogenous minimum wage and an informal sector, and find that in these two extended cases the main results of the basic model will conditionally or unconditionally hold. When we consider some empirical evidences in China, our models predict that an increase in the strength of hukou system reforms will reduce the wage inequality.

Key Words

Informal Sector ; Rural Migrant Workers ; Wage Inequality ; Urban Unemployment ; General Equilibrium Approach

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ID: 176586

Threshold Effect of Factor Price Distortion on Technological Content of Exports: evidence from China / Pi, Jiancai ; Song, Daqiang

Pi, Jiancai	Journal Article
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Using panel data from 31 provinces in China, covering the period from 2003 to 2017, this article analyzes the threshold effect of factor price distortion on the technological content of exports. The results show that factor price distortion does not necessarily impede improvement in the quality of the technological content of exports. Instead, the adverse effect can be weakened when the value of per capita GDP is higher than RMB13,154 or the value of FDI goes beyond RMB480.9 billion. This is because a high regional economic development level alleviates the adverse effect of factor price distortion on the technological content of exports. Our results are robust when the dependent variable and sample years are changed. This article also addresses the endogeneity issue. We also consider the underlying mechanism through which factor price distortion affects the technological content of exports.

Key Words

Chinese Economy ; Threshold Regression ; Factor Price Distortion ; Technological Content of Exports

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