A Study On The Evolvement Of Wage Gap In China 's Labor Force Group And Its Influencing Factors

The Gini coefficient in China has always been in 0.4-0.5 for the past 12 years, which has been analyzed by many researchers. They focus on the between-group wage disparity that is disparity between labors with different characteristics, however the explanation power is only around 20%. We need to put more attention on within-group disparity that is disparity in labors with the same or similar characteristics. This paper finds that within wage disparity can explain nearly 85% of the total disparity.The decomposition result shows that “price effect” which defines as the return of skill price is more important compares with “composition effect” which defines as the distribution of labor force. But composition seems more virtual since 2000 and for middle district than the east district. The influential factor model shows that within wage disparity has an “inverse U shape” relation with road and GDP per capita. College graduates index has the “inverse U shape” relation with lower quantile of within wage disparity, which means in China the skill-biased technology progress is more related with middle-skilled labor force. The institutional conditions of labor market such as social-owned employees and union members have significant impact to within wage disparity, but have negative impact to upper quantile disparity and lower quantile disparity. The openness of economy has no significant influence.