The Impact Research Of Occupational Segmentation And Household Registry Segregation On Wage Differentials In China’s Labor Market

In the market economy environment,the occupation itself has the corresponding request to the worker’s knowledge and the skill, workers’ wages are a reflection of the value of labor. The wage difference due to the difference of labor ability, and the department and occupation at the higher level of the labor market will not accept the workers of the low levels human capital. And with the deepening of China’s market-oriented reform, institutional obstacles will be more and more weakened, Occupational segmentation due to the labor force heterogeneity will become an important form of labor market segmentation. But we know that the root of China labor market segmentation is dominated by a series of institutional arrangements of the household registration system. Especially in the process of transformation from agricultural society to industrial society in China, the process of the industrial and occupational structure upgrading and transformation caused by endogenous economic factors, the household registration system as the representative of the institutional and social factors and labor market occupational segmentation are intertwined. There is a clear phenomenon of segregation that different household workers is distributing in different levels of occupation. This paper argues that clarify the degree of occupational segmentation of labor market in our country, whether there is occupational household registry segregation and the influence of occupational segmentation and household registry segregation on wage differentials is important to understand the running situation of the labor market in our country, to make correct labor market policy, to promote the labor productivity and the equality of employment and income.Firstly, On the basis of understanding the general situation of China’s occupational development, this paper uses Cluster Analysis method to measure and analyze the current situation of China’s labor market occupational segmentation, and uses the Multinomial Logit model( MNL) to carry an empirical analysis of influence factors on occupational attainment. And as the same time, the paper compared the wage difference of the different levels of occupation. Using the Sample Selection Wage Equation and the Melly(2005) decomposition method based on quantile regression to theoretically and empirically analysis the decision mechanism of occupational wage and the reasons for the formation of occupational wage differentials.Secondly, Duncan Index and other methods are used to measure and analyze the occupational household registry segregation on the basis of occupational segmentation; and from aspect of endogenous economic factors such as the productive force and industrial development, social division of labor, and other aspects of the institutional and social factors, the paper seeks the theoretical explanation of the formation of China’s occupational household registry segregation. Meanwhile, the paper also from the two aspects of the human capital investment polarization trend on urban and rural workers and family and social reproduction mechanism of education to analysis the maintenance mechanism of occupational household registry segregation.The paper also takes the different household laborer’s wages as the research object, from urban and rural household registry segregation and native and non-native household registry segregation two angles, empirically studies the wage differentials proportions accounted for the total respectively caused by occupational attainment obstacle and “different pay for the same” for the different household workers using the an improved method based on Appleton Decomposition.Through the above research, this paper draws the following conclusion:①In the market economy system, occupational segmentation due to the labor force heterogeneity will become an important labor market segmentation, labor quality and human capital level play a more and more important role in the occupational attainment and wage income. Both 70% above of the wage differentials between the urban and rural workers and native and non-native workers is caused by the difference of individual characteristics, such as human capital, natural endowments and other of workers. ②There is still exist serious phenomenon of occupational household registry segregation In China’s labor market, the wage differentials caused by occupational attainment barriers is far greater than occupational "with different reward". Which caused by discrimination on rural household workers occupational attainment obstacle accounted for the total wage differential 28.41%; Occupational attainment obstacles caused by household discrimination against migrant workers accounted for 15.55% of total wage gap, 6.31% to the local household labor concessions. ③There is a big difference in the level of occupational wage, but the vast majority of the wage difference between the occupation is not caused by individual characteristics such as the level of human capital, but the influence of the system and social discrimination and other factors. ④Occupational urban and rural segregation is much larger than the regional segregation, urban household workers have more advantages than rural workers in occupational obtainment and wage income; Discrimination on migrant workers is still exist, in a state of non-discriminatory, the migrant household workers should obtain more high-level occupation and wage income. ⑤ Agriculture related occupations are relatively large proportion in China’s occupational structure, and smaller proportion of professional and technical occupations, the level of modernization and upgrade of occupational structure is relatively low. The most direct manifestations of occupational segmentation in China’s labor market is that the proportion of low level of occupational workers is too large, and it is difficult to entry the higher occupational level.