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A New Dimension of Urban Labor Market Segmentation:Perspective from Labor Relations
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TitleA New Dimension of Urban Labor Market Segmentation:Perspective from Labor Relations  
AuthorLi Xiaoying, Chen Guanghan and Zhao Zhong  
OrganizationSun Yat-sen University,Renmin University of China 
Emailli.xiaoyingcq@gmail.com;chguangh@gmail.com;mr.zhong.zhao@gmail.com 
Key WordsEmployment Contracts; Labor Market Segmentation; Income Differentials 
Abstracthe Chinese urban labor market is characterized by segmentation along different dimensions. This paper focuses on the labor market segmentation caused by labor relations. Using 2008 household survey data, we find that the wage determinants and wage equations differ considerably under different categories of employment contract. Our decomposition exercise for mean as well as quantiles shows that wage differentials between different types of employment contract are largely explained by the effect of the labor market segmentation but not the effect of endowment; it implies that different types of employment contract has caused labor market segmentation. After controlling for possible sample selection bias due to observables by propensity score matching methods, the main results remain robust. 
Serial NumberWP581 
Time2014-01-14 
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