Commenced in January 2007
Paper Count: 30135
Industry Openness, Human Capital and Wage Inequality: Evidence from Chinese Manufacturing Firms
Abstract:This paper uses a primary data from 670 Chinese manufacturing firms, together with the newly introduced regressionbased inequality decomposition method, to study the effect of openness on wage inequality. We find that openness leads to a positive industry wage premium, but its contribution to firm-level wage inequality is relatively small, only 4.69%. The major contributor to wage inequality is human capital, which could explain 14.3% of wage inequality across sample firms.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1123546Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 862
 Fiorio, C.V. and S.P. Jenkins, INEQRBD: Stata module to calculate regression-based inequality decomposition, in Statistical Software Components S456960.2010: Boston College Department of Economics.
 Goldberg, P.K. and N. Pavcnik, Distributional Effects of Globalization in Developing Countries. Journal of Economic Literature, 2007. 45: p. 39-82.
 Galiani, S. and P. Sanguinetti, The impact of trade liberalization on wage inequality: evidence from Argentina. Journal of Development Economics, 2003. 72(2): p. 497-513.
 Hazarika, G. and R. Otero, North–South trade liberalization and returns to skill in the south: The case of Mexico. The Journal of International Trade & Economic Development, 2010. 20(4): p. 449-465.
 Mehta, A. and R. Hasan, The effects of trade and services liberalization on wage inequality in India. International Review of Economics & Finance, 2012. 23(0): p. 75-90.
 Esquivel, G. and J.A. Rodriguez-Lopez, Technology, trade, and wage inequality in Mexico before and after NAFTA. Journal of Development Economics, 2003. 72(2): p. 543-565.
 Attanasio, O., P.K. Goldberg, and N. Pavcnik, Trade reforms and wage inequality in Colombia. Journal of Development Economics, 2004. 74(2): p. 331-366.
 Bernard, A.B., et al., Firms in International Trade. Journal of Economic Perspectives, 2007. 21(3): p. 105-130.
 Fields, G.S., Accounting for income inequality and its change: A new method, with application to the distribution of earnings in the United States. Research in labor economics, 2003. 22: p. 1-38.
 Arbache, J.S., A. Dickerson, and F. Green, Trade Liberalisation and Wages in Developing Countries. The Economic Journal, 2004. 114(493): p. F73-F96.
 Corden, W.M., The structure of a tariff system and the effective protective rate. The Journal of Political Economy, 1966. 74(3): p. 221- 237.
 Kumar, U. and P. Mishra, Trade liberalization and wage inequality: Evidence from India. Review of Development Economics, 2008. 12(2): p. 291-311.
 Pavcnik, N., et al., Trade Liberalization and Industry Wage Structure: Evidence from