A Study Of Occupation Segregation And Income Differential Among Workers With Different Household Registry (Hukou)

The income differential and inequality between urban and rural household registry workers are always the focus of attention.Compared with urban household registry workers,the majority of rural household registry workers are concentrated in low level occupations and engaged in jobs with low income,low technical content and poor stability.There exists occupation segregation between different household registry workers,which attributes to both the influence of human capital endowment difference and household registry discrimination.Science occupation is an important mechanism which affects income level,occupational segregation inevitably restricts the raise of rural household registry workers' income.Take the intermediary role of occupation in the income decision as the breakthrough point,this paper analyzes the effects of occupation segregation on the income differential between workers with different household registry,it is of great significance for promoting fair employment in the labor market and narrowing the income differential.Using the survey data of CHIP2013,this paper first analyzes and measures the current situation of occupational household registry segregation in labor market,empirical analysis of the factors which affecting occupation choice of labor force is conducted through multivariate discrete choice model.Secondly,counterfactual occupation distribution is estimated to verify whether rural household registry workers are discriminated in process of occupation attainment because of household registry obstacle.Then,Mincer wage equation is established to analyze the wage mechanism of workers with different household registry and different occupations.On this foundation,regression-based income decomposition method is applied to decompose the income differential into inter-occupational and intra-occupational income differential and investigates the contribution of occupation attainment discrimination,unequal pay for equal work and human capital endowment difference on the income differential between urban and rural household registry workers.The research shows that there is a serious phenomenon of occupational household registry segregation in the labor market,occupation segregation is the result of a combination of human capital endowment difference and discrimination,but endowment difference played the main function;Compared to urban household registry workers,migrant rural household registry workers are suffered from discrimination in occupation competition,while local rural household registry workers are subject to protection,this demonstrates that there exists some degree of exclusion in the recruitment of enterprises.Further decomposition results show that inter-occupational contributes to 35.2%-55.4%of total income differential,this means that occupational segregation is powerful in explaining the income differential between different household registry;Overall,income differential between urban and rural household registry workers is rather the result of the difference of human capital endowment under the market mechanism,among occupations,this manifests as workers get jobs with different income levels according to their individual characteristics,within same occupation,this manifests as able people should get more pay.