| This paper examines the gender pay gap using china household survey. The emphasis is laid on the effect of discrimination suffered by female workers on the gender pay gap.Female workers are discriminated in the labor market in the following processes:when they take park in the labor market (referred to employment discrimination hereafter); when they choose working industries (referred to industrial choice discrimination hereafter); when they get paid by the employers (referred to pay discrimination hereafter).employment discrimination implies male workers can get a job while female workers cannot under the same conditions. Industrial choice discrimination implies that male workers are employed in high-pay industries while female workers are employed in low-pay industries. Pay discrimination implies that male workers can get a higher pay than female workers even both of them are employed in the same industry.most of the existing literature focuses on how pay discrimination affects gender pay gap. Little attention is paid to the effect of employment discrimination and industrial choice discrimination. In fact, all of these three kinds of discrimination may exist in the Chinese labor market. This paper investigates the effect of all three kinds of discrimination one by one.Since many researchers have studied the effect of pay discrimination on the gender pay differentials on the level of mean, we extend our research to the level of distribution when examining the effect of pay discrimination.because of this extension; we have got many interesting results which are not covered in the previous researches. When we examine the effect of employment discrimination and industrial choice discrimination, we still set our research on the level of mean.the main reason to do this is to make our relevant results more understandable. Another contribution of this paper to the literature is that our research is done not only on one single year but also on consecutive years(1996-2009).by doing so,we can get the effect of discrimination on the trend of pay gender differentials.This paper includes six parts. The first part is an introduction, describes the purpose of this study, the significance and contribution of this paper.Part2introduces three things:institutions changes in Chinese labor marker, literature review of pay fender gap, the dataset we used in this paper, the reforms of employ system and pay system in china are briefly examined in this chapter. Some classical methods and some papers in the study of gender pay gap are surveyed in this chapter.Part3examines the effect of pay discrimination on gender pay gap. The methodology in this chapter is counterfactual analysis based on quintiles pay regression.we get the following results in this chapter. First, the scale of gender pay gap varies with the positions of pay distribution. The gender pay gap is big at the lower tail and small at the higher tail of pay distribution.the trend of gender pay gap varies with the positions of pay distribution too. The gender pay gap is bigger at lower tail.the opposite occurs at higher tail. Second, female workers suffer more discrimination at the lower tail and less discrimination at the higher tail. This can account for why gender pay gap is big at the low tail and small at the higher tail. Third, the reason why gender pay gap is bigger and bigger at lower tail is that female workers get more and more discrimination at lower tail. Fourth, the reason why gender pay gap is smaller and smaller at higher tail is that the difference of individdual characteristics between male an female workers gets smaller and smaller at higher tail. From this chapter. We can see that gender pay gap research at the mean level may hide some interesting facts. We had better to extend it to the level of distribution.Part4examines the effect of employment discrimination on gender pay gap. The methodology in this chapter is BFL micro simulation method. We get the following results in this chapter. First, there is a diverging trend of gender pay gap in the Chinese labor market. The gender pay gap in the employed sample is smaller and smaller.there is a diverging trend of labor participation rate between male and female workers too. Compared to male workers, female workers quit the labor marker more and more often. These two diverging trends are connected. Second, female workers get more and more employment discrimination in Chinese labor market. This can account for the diverging trend of labor participation rate. Third, pay discrimination and employment discrimination have different effects on the trend of gender pay gap. Gender pay gap is reduced in both employed sample and whole sample after eliminating pay discrimination.gender pay gap is reduced in whole sample but enlarged in employed sample after eliminating employment discrimination. It is employment discrimination rather than pay discrimination that can account for the diverging trend of gender pay gap. From this chapter, we can see that we may gen wrong conclusions if we only focus on the employed sampled.for example, as we say, the gender pay gap is smaller and smaller in the employed sample in Chinese labor market. This does not mean female workers’ situation is better. The real reason is that female workers suffer more employment discrimination.Part5examines the effect of industrial choice discrimination on gender pay gap. The methodology in this chapter is Appleton decomposition method. We get the following results in this chapter.first, industrial choice discrimination has little effect on gender pay gap at single year.Second; industrial choice discrimination has little effect on the trend of gender pay gap too. From this chapter, we can see that the relationship of gender pay gap with industrial segregation does not agree with the classical economic theories, which will provide new viewpoints to the existing literature.The general conclusion is provided in Part6.the results of this paper can be summarized as follows:female workers in Chinese labor market face serious employment discrimination and pay discrimination, but they are not greatly suffered from industrial choice discrimination. |
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