Wage Inequality Between State-owned Sector And Non State-owned Sector

ABSTRACT:In recent years, the high wage level of state-owned sectors is becoming a focus problem of the society. The government and the scholar has been exploring the path of the wage reform of state-woned sectors. However, we found that most papers are based on the qualitative description and the normative proposal. We lack of the empirical analysis of micro-date. Through the study, the autor hope enhance rational thinking for the real world experience and provide a basis for government decision-making.Based on the perspective of returns to skills, this research analyzes the wage inequality between state-owned sectors and non-state sectors. This reaserch includes five parts:First, the thesis analyzes the wage differences within and between groups and sketches the outline of wage reform. Second, it looks into the skill premiums of state-owned sectors. Third, based on the institutional background, this research uses the wage determination model to analyze the quantitative reasons of the wage difference. Fourth, it integrates the skill premium and the wage differential, and uses the quantile regression model to decompose the rise in wage inequality. At last, it makes a conclusion and proposes suggestions.Firstly, the reaserch looks into the wage inequality between state-owned sectors and non-state sectors comprehensively. The author discovers that as the wage level continuously rise, the wage difference between state-owned sectors and non-state sectors expands. Then, it analyzes the wage level on several quantile points. The author finds out that the wage distribution of non state-owned sectors is more scatterred. The wealthy people get richer faster than the poor. The inequality in the low-scoring is greater than it is in the high-scoring. The wage distribution of state-owned sectors is more concentrated. The wage inequality in different points has no significant differences.Secondly, the reaerch uses Mincer wage equation to estimate the skill premium of state-owned sectors from1989to2009. The result confirms that the rate of return to education rises signifincatly and the rate of return to work experience changes little. In addition, it estimates several adjustment models to analyze the rate of return to skill.Thirdly, based on the theoretical and empirical analysis, it uses the Blinder-Oaxaza model to decompose the influences of wage differential. The author finds that the skill premium is the main reason of the rise of wage inequality. In addition, we use the Quantile-JMP model to analyzes the structure and the price effect. Before2000, the orifessional workers in state-owned sectors receive negative wage premium. The human capital value is also underestimated. After2000, all workers in state-owned sectors receive positive wage premium. The low-skill workers benifit more from this.Finally, the author makes an conclusion and proposes several suggestions. The purpose is to establish an unified, flexible, and complete labor market.The main innovation of this paper include:Firstly, it measures China labor market competitiveness. Secondly, it uses different econometric models to estimate the rate of return to skills; Thirdly, it uses Q-JMP model to analyze the impact factors of wage inequality; Finally, the autor proposes several suggestions.