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Trends in China’s gender employment and pay gap

Trends in China’s gender employment and pay gap
Trends in China’s gender employment and pay gap

Trends in China’s gender employment and pay gap:Estimating

gender pay gaps with employment

selection

Wei Chi ?,Bo Li

School of Economics and Management,Tsinghua University,Beijing 100084,China

a r t i c l e i n f o Article history:Received 24October 2012Revised 27June 2013Available online 16July 2013JEL classi?cation:J3Keywords:Gender pay gap Gender employment gap Heckman selection correction Bounds Instrumental variable

a b s t r a c t

Chi,Wei,and Li,Bo —Trends in China’s gender employment and pay gap:Estimating gen-

der pay gaps with employment selection

In contrast to the United States and European countries,China has witnessed a widening

gender pay gap in the past two decades.Nevertheless,the size of the gender pay gap could

still be underestimated as a result of not accounting for the low-wage women who have

dropped out of the labor force.As shown by a large and representative set of household sur-

vey data in China,since the 1980s the female employment rate has been falling and the gap

between male and female employment rates has been increasing.We estimate the gap size

using Heckman’s selection-correction model and bounds of the raw gender pay gap,taking

into consideration the different male and female employment rates in China.The results

support the view that the gender pay gap estimate is biased without taking into account

employment selectivity.Journal of Comparative Economics 42(3)(2014)708–725.School

of Economics and Management,Tsinghua University,Beijing 100084,China.

ó2013Association for Comparative Economic Studies Published by Elsevier Inc.All rights

reserved.1.Introduction

In contrast to the narrowing gender wage gap in the United States,1China has experienced a widening gender pay gap in

recent decades.2China also provides an interesting contrast to other transition countries,such as Poland,Hungary,Russia,Esto-

nia,and Slovenia,where the relative wages for women were unchanged or even improved during the transition from a cen-

trally-planned to a market economy.3

In theory,the gender wage gap could widen during the transition from a planned economy to a market economy,as a

result of deregulation of wage setting and rising discrimination in the labor market.On the other hand,increasing market

forces could punish employers with discriminatory tastes and reduce the gender pay gap (Becker,1957).This mechanism

has been con?rmed in Hungary,where both the overall gender wage gap and the gap due to different returns to the

endowments of men and women have declined (Jolliffe and Campos,2005).The improved economic status for women in

0147-5967/$-see front matter ó2013Association for Comparative Economic Studies Published by Elsevier Inc.All rights reserved.https://www.doczj.com/doc/455177228.html,/10.1016/j.jce.2013.06.008

?Corresponding author.Address:E51School of Economics and Management,Tsinghua University,Beijing 100084,China.Fax:+861062772021.

E-mail addresses:chiw@https://www.doczj.com/doc/455177228.html, (W.Chi),libo@https://www.doczj.com/doc/455177228.html, (B.Li).

1

Blau and Kahn (2006,1997)and Blau (1998).

2Gustafsson and Li (2000),Appleton et al.(2005),Ng (2007),and Chi and Li (2008).

3Glinskaya and Mroz (2000)and Reilly (1999)found that the gender pay gap in Russia did not change during the transition from 1992to 1996.Adamchik

and Bedi (2003)found no change in women’s relative wages in Poland during their transition years.Jolliffe and Campos (2005)showed that the gender wage

gap declined in Hungary from 1986to 1988.Improvement in women’s economic welfare was also found for Estonia and Slovenia by Orazem and Vodopivec

(2000).

W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725709 a transition country might also be explained by the change in the composition of the female labor force.Hunt(2002)showed that the gender wage gap fell by10points in East Germany during the economic transition,but a large part of this fall was due to the withdrawal of low-wage women from the labor market.

China has the world’s largest labor force,with an estimated0.78billion actively working people as of2010.4The male–female pay gap is one of the key issues concerning the vast number of workers in China.Although prior research has examined the gender wage gap,occupation segregation,and discrimination in China,5most studies have used samples of working indi-viduals to estimate gender pay gaps,with very few addressing male and female employment rates or how the gender employ-ment gap affects the pay gaps.

According to Chi and Li(2008),employment rates declined from1987to2004for both men and women,but more so for women.With only3years of data,they could not show a trend in the employment rate or gap.We extend Chi and Li(2008) by using20years of data to study the trend in gender employment and pay gaps.Appleton et al.(2005)proposed that the gender pay gap in China has stopped widening and has remained relatively static in recent years,suggesting that China may have‘‘crossed the river’’.We found a similar trend for the raw gender pay gap,but we argue that this?nding may be overly optimistic since it does not consider the decline in female employment rates in China.

This paper studies formal sector employment of men and women,similar to the work of Chi and Li(2008).As a transition country,China has a large informal employment sector,which has grown rapidly and has absorbed a large number of rural migrants and urban unemployed workers.However,informal employment is often excluded from of?cial employment sta-tistics.Therefore,little is known about the gender composition of workers in the informal sector.Zhang et al.(2006),Meng (2001),and a recent study by the International Labor Organization(ILO),6showed that there were fewer women than men working in urban China’s informal employment sector,especially among the self-employed.Meng(2001)found that for both wage-earners and the self-employed,migrants had higher incomes in the urban informal sector than those in the formal sector. Although we could not provide a formal estimate because of a lack of data,our study speculates that the estimate of the gender pay gap would likely be even larger if we had taken informal employment into account,since more men are employed in the informal sector and men earn higher wages than women in the informal sector.

From a methodological perspective,our study applies both Heckman’s selection-correction(Heckman,1979)and the bound method(Manski,1994;Manski and Pepper,2000;Blundell et al.,2007)to correct for employment selection in esti-mating gender pay gaps.Heckman’s selection-correction method is based on stringent parametric/semi-parametric assump-tions.It is more restrictive,and is potentially subject to misspeci?cation error.The bound method lies within the large and expanding literature of partial identi?cation.It requires minimal assumptions.Although it fails to point-identify the inter-ested parameters,it may still give informative bounds for the parameters of interest,and is generally more robust than Heck-man’s selection-correction method.However,the bound method may sometimes produce loose and uninformative results, making it dif?cult to draw a conclusion from the data.In summary,the two methods complement each other.By using both methods,we can check the robustness of our results.

Our main?ndings are that the employment rates in China have generally decreased since1989,and have declined more for women than for men,which has contributed to a widening gender gap in the employment rate.Our data also shows wid-ening gender pay gaps among working https://www.doczj.com/doc/455177228.html,ing Heckman’s selection-correction method,we?nd evidence that the raw gender pay gap has been underestimated for recent years.The bound results,however,are less conclusive.

The remainder of this article is organized as follows:Related studies are introduced in Section2.We describe the data and present descriptive results in Section3.Empirical methods are discussed in Section4.Heckman’s selection-correction and bound results are reported in Section5.Finally,we discuss the results and conclude the article in Section6.

2.Related studies

While many studies of the Chinese gender earnings gap show the gap widening since economic reform began in1978, results vary as to the amount of this increase.7However,the cause of the increase is relatively well established.The discrim-ination effect,which is the portion of the gender pay gap that cannot be explained by gender differences in productivity,has accounted for a larger portion of the gender gap and has been increasing(Chi and Li,2008;Ng,2007;Gustafsson and Li, 2000).Since previous studies have relied on cross-sectional data covering only a few years,the long-term trend in the gender pay gap remains unclear.

Regarding the gender employment gap,Chi and Li(2008)showed that both male and female employment rates had fallen from1996to2004for all age groups.Participation in work is in?uenced by one’s own characteristics such as education and experience,as well as family characteristics such as marital status,the presence of a young child in the household,and

4Data source:China Statistical Yearbook2011,Table4-1.https://www.doczj.com/doc/455177228.html,/tjsj/ndsj/2011/indexch.htm.

5Gustafsson and Li(2000),Appleton et al.(2005),Ng(2007),Meng and Miller(1995),Meng(1998a,b),Rozelle et al.(2002),Dong et al.(2003),Maurer-Fazio and Hughes(2002),and Maurer-Fazio et al.(1999).

6International Labor Organization,‘‘Women and men in the informal economy–Statistical picture’’.https://www.doczj.com/doc/455177228.html,/informal_economy_E.html.

7Gustafsson and Li(2000)found that the gender wage gap in urban China had increased from1988to1995,while Ng(2007)showed that the urban gender pay gap had decreased from the1980s to the early1990s,but had increased since the mid-1990s.Chi and Li(2008)found that gender earnings differentials in the urban labor market increased for both periods,from1987to1996and from1996to2004,but the increase was more pronounced in the later period. Appleton et al.(2005)showed that the raw gender pay gap had increased from1988to1999but decreased from1999to2002.

710W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725

spousal income.In China,the education level of urban workers has increased rapidly in the past two decades.The presence of a young child in the household reduces labor force participation,especially for women.However,this relationship decreases as the availability and affordability of childcare services increases.8The decline in publicly-funded childcare centers and the increase in childcare costs in recent years have had a negative impact on the labor force participation,particularly for women.

Spousal income should have a negative impact on an individual’s labor force participation because of the income effect. However,for Chinese urban women,this effect was small and insigni?cant(Xu,2011).Culture also in?uences the decision to work.In the pre-reform period,Chinese women were encouraged to work the same jobs as men,and work was guaranteed by the state.After the reform,the ideology of‘‘women holding up half the sky’’became less common and a patriarchal value system re-emerged,which led to an increase in the number of women withdrawing from the labor market(Croll,1995; Maurer-Fazio et al.,2007).Additionally,women may be discriminated against in the workforce,denied employment and promotions,and be laid off more quickly,contributing to their lower employment rate.For example,it has been found that urban Chinese women are more likely to be discharged and less likely to be re-employed during labor retrenchment(Dong and Pandey,2012;Giles et al.,2006;Appleton et al.,2002).

In summary,a number of factors in?uence participation in the labor market,and each has a different impact.Increases in education levels and childcare costs are likely to be associated with positive selection into work.On the other hand,the in-come effect suggests a negative employment selection,especially for women.The non-random employment selection im-plies that the gender wage gap estimated based on the employment sample could be biased.Recent research has begun to pay great attention to this bias.

Since the1980s,both the labor force participation rate and mean wages of women in the United States have been rising, while gender pay differentials have been narrowing.However,several studies have suggested that the narrowing gender pay gaps in the United States may have been overestimated as a result of overlooking changes in the composition of female workers.Mulligan and Rubinstein(2008)showed that selection of women for employment shifted from being negative in the1970s to positive in the1980s.As more skilled women joined the labor force,women’s relative wages increased.The researchers showed that most of the narrowing of the wage gap between genders was due to this change in the skill com-position of female workers.Blau and Kahn(2006)found that the gender pay gap decreased more rapidly in the1980s than in the1990s in the United States,but the differences between the two decades were mostly due to different sample selectivity in the two decades.Machado(2010),however,reached a more positive conclusion:that the gender pay gap in the United States had indeed narrowed substantially,and that the improvement in gender wage equality was not entirely a result of the selection effect.

Similar studies in Europe include Blundell et al.(2007),Albrecht et al.(2009),Picchio and Mussida(2011),and Beblo et al. (2003).Blundell et al.(2007)used the UK.Family Expenditure Survey data to estimate the non-parametric bounds to gender pay differentials for different age and education groups.Albrecht et al.(2009)extended the Machado and Mata(2005)meth-od to account for employment selectivity in gender pay gaps in the Netherlands.They found that if all the non-working wo-men were employed,the gender pay gap would be much larger.Picchio and Mussida(2011)adapted the hazard function estimator proposed by Donald et al.(2000)to estimate the gender wage gap in Italy.Their results also suggested an under-estimation of gender pay gaps without selection correction,especially at the bottom of the wage distribution.Beblo et al. (2003)found that accounting for self-selection into work had an impact on gender wage estimates and wage gap decompo-sition in their study of?ve EU countries.

Employment selectivity is also useful to explain cross-country differences in the gender pay gap.Olivetti and Petrongolo (2008)showed that both the gender employment gap and the gender pay gap varied signi?cantly across OECD countries,and that there was a negative relationship between the gender employment and gender pay gaps.Their analysis suggests that international variation in the gender pay gap would be smaller if the employment-rate differences across countries were ta-ken into consideration.

3.Data

3.1.China’s urban household surveys

This study uses data collected from China’s Urban Household Surveys from1988to2009.The Urban Household Survey has been conducted by China’s National Bureau of Statistics(NBS)every year since1987.9The survey gathers information from a large random sample of urban households through interviews.The NBS uses this data to produce aggregate statistics on employment and income,which are published in China Statistical Yearbooks.10The surveys use a strati?ed random sampling 8Maurer-Fazio et al.(2011)found that the labor force participation rate of Chinese urban women with pre-school children had fallen considerably from1990

to2000,and that living with grandparents helped keep the women in the labor market.Kilburn and Datar(2002)and Du(2008)showed that the availability of child care centers or an informal childcare arrangement(such as co-residence with grandparents)had a positive impact on the labor force participation of working-age women.However,the transition from a centrally-planned economy to a market economy has led to a signi?cant decline in publicly-funded childcare centers(Du and Dong,2010),and the cost of childcare centers has risen dramatically.According to a recent newspaper article,kindergarten is more expensive than college in China(Peter Ford,Christian Science Monitor,February23,2010).https://www.doczj.com/doc/455177228.html,/World/Asia-Paci?c/2010/0223/In-China-kindergarten-costs-more-than-college.

9We do not use1987data because data quality is poor in the?rst year of the survey.

10The overview of the survey methodology can be found in the yearbooks.

W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725711

female employment rates.Source:NBS Urban Household Survey data1989–2009;author’s

method.To ensure that the sample is representative,each year one-third of the households are rotated out and replaced by new households.Thus the household sample is completely renewed every three years.11

The survey begins with a monthly accounting of an individual’s basic information on demographics,education,employ-ment status,industry,and occupation,as well as the total monthly income,earnings,and other income components.The sur-vey then asks a set of questions about household living arrangement,housing type,and all kinds of household expenditures. The monthly data are then aggregated into yearly data and reported to the NBS.We used this yearly data provided by the NBS.

3.2.Sample and variables

Our study focuses on individuals of primary working age.The original sample size was618,041.We selected men aged 16–60and women aged16–55.The upper limit was set to exclude retired people;the normal retirement age is60for men and55for women in China.Because of the lower retirement age for women,many older women who are still capable of working begin temporary or part-time work or care for grandchildren or older parents,while men of the same age continue to work full-time.As a result,average income is signi?cantly reduced for older women,and the gender pay gap widens in this age group.If the older age group was included in our analysis,our estimates of the gender pay gap would be even higher.

As the result of age restriction,181,370observations were excluded from the study,of which?ve were deleted because information on the age was unavailable.Individuals with missing information for gender,education,labor force status or earnings were also excluded,resulting in a further reduction in the sample size by132.The?nal sample consisted of 214,296women and222,243men.Table A1shows the number of observations for each survey year.

The survey asks about the relationship between the respondent and the household head,such as whether the respondent is the household head herself,or if it is her spouse,child,or parent.Based on this question,we generate a dummy indicator of whether an individual has a young child aged66years.Table A2shows the percentage of men and women who have a young child.Those with a young child are mostly aged25–35years.12Based on the family relationship code,we are also able to identify a household head and her/his spouse.For all years,we identify a total of152,788couples.

Although the hourly wage rate would have been ideal to examine gender pay differentials,only annual earnings were available in our dataset.However,information on the number of hours worked was available in the2003–2006surveys. Thus,we calculated the hourly wage rate using annual earnings and hours of work,then calculated the gender gap in both the hourly wage and annual earnings for2003–2006.The results are shown in Table A3.Women,on average,worked2–3h fewer per month than men.The gender pay gap was larger when annual earnings were used in the calculation,suggesting that the gender earnings gap is to some extent caused by difference in the number of working hours.

11Potentially we could identify individuals in multiple waves of surveys and generate a3-year set of panel data,but unfortunately we were not given access to the unique household and individual identi?er,and thus were unable to match individuals over time.

12Since the early1980s,China has enforced its one-child policy in urban areas.Most couples have only one child,except for those having twins.Therefore,the difference between whether a couple has a young child and the number of young children is small.

712W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725

earnings.Source:NBS Urban Household Survey data1989–2009;author’s own calculation.Note:

taken for earnings.The?gure shows the mean log(earnings)for men and women.

Since hourly wages are available only for a few years,to study the long-term trend in the gender pay gap,we used annual earnings in RMB for our analysis.We took the logarithm of annual earnings,and estimated the gender pay gap by calculating the differences in the log earnings between men and women.

Two measures of employment can be generated from the survey data.One is the self-reported employment status,and the other is the dummy indicator of positive earnings.In the survey,self-reported employment status takes a value from1to 15,with1–7indicating employment in a state-owned,foreign,or private company,or in the government or other sectors, and8–15indicating non-working individuals,including retired and disabled persons,enrolled students,etc.Because the employment status question has non-standard phrasing,13we could not identify unemployed individuals.Therefore,we focus on the employment rate instead.We de?ne employment as equal to1if the self-reported status takes the value of1–7.Alter-natively,we de?ne employment equal to1if an individual reported positive earnings.These two measures of employment are signi?cantly correlated with a correlation coef?cient of0.80.14We report results based on the second measure–an individual is employed if her earnings are positive.15

3.3.Gender employment gap and raw gender pay gap

Fig.1shows that both male and female employment rates declined during the20-year period.The female employment rate dropped by20%points between1988and2009,whereas the male employment rate fell by12%points.Since2000,the female employment rate decreased rapidly while the male employment rate was stagnant and even increased slightly after 2005.As a result,the gender employment gap has widened notably since2005.By2009,the gender employment gap had risen to10%points,as compared to only2%points in1988.The decline in overall employment rates in urban China is related to economic restructuring and large-scale layoffs by state-owned enterprises in the1990s and2000s.Furthermore,the lower female employment rate and widening gender employment gap are caused by increasing childcare costs,diminishing avail-ability of publicly-funded childcare centers,income effects,and the resurrection of the traditional division of work between men and women.

13Usually a labor force survey asks whether a person is out of job,and if yes,whether he is actively looking for a job.

14Because self-reported employment status pertains to status in the last month of the survey year,typically December,while positive earnings indicate that an individual has done some work during the year,the two measures are not always consistent.For people who did not change work status during the year,the two measures give the same value.

15We calculated the employment rate by the same method with another household survey dataset,the Chinese Household Income Project(CHIP).CHIP data are provided by ICPSR,University of Michigan(https://www.doczj.com/doc/455177228.html,),and are only available for three years;1988,1995,and2002.Moreover,of?cial statistics on the urban registered unemployment rate from1988to2009were taken from the China Statistical Yearbooks.This rate refers to the ratio of urban registered unemployment to total urban employment.Urban registered unemployment includes people aged above16years and below the of?cial retirement age who are unemployed,are willing to work and have registered at the local employment service agency to apply for a job.These rates are shown in Fig.7.The trend for the urban registered unemployment rate is almost the reverse of that in the employment rate calculated with our data.The employment rate calculated with CHIP data in the years1988,1995,and2002is close to our estimate.This comparison provides some evidence for the reliability of our measurement.

Fig.2demonstrates average log earnings for men and women from 1988to 2009based on the sample of employed indi-

viduals.Although both male and female log earnings increased signi?cantly during this period,the gender pay gap also in-

creased.Fig.2shows that the raw gender pay gap,measured by male–female differences in mean log earnings,increased

from 0.2to the maximum of 0.4log points during the mid-2000s,then decreased to 0.35log points in 2008and 2009.

We also calculated the gender earnings gap as the ratio of average female earnings to male earnings.The ratio decreased

from 82%in the late 1980s and early 1990s to a low of 71%in the mid-2000s,then rose back up to 75%in 2009.

4.Empirical methods

4.1.Simulation

Similar to Olivetti and Petrongolo (2008),we conduct simulations to show potential bias in the gender earnings gap,given

positive employment selection.Let W and X denote the logarithm of wage and the conditional vector (including gender,age,

education,and year).When W is observed,the indicator variable employment (E )equals 1,and when W is not observed,E

equals 0.Assume that non-employed individuals earn a wage equal to a proportion (r )of the wage of employed

individuals.

gender pay gaps.Source:NBS Urban Household Survey data 1989–2009;author’s own calculation.‘‘raw gap’’)and simulated ones based on Eq.(1).The gender pay gap is measured by male–female earnings in RMB Yuan.Positive employment selection is assumed.r =0.9,0.7,and 0.5assumes observed earnings of workers.The employment rate and observed wages used in the simulation are Table 1

Employment rates of women and men with and without young children in the 1990s and 2000s.Source:NBS Urban Household Survey data 1989–2009;

author’s own calculation.

1990s

2000s All years Panel A

Employment rates

Women with young children

96.6479.7585.80Women without young children

96.7981.01*86.65*Men with young children

99.2689.6793.86Men without young children

96.74*83.95*87.62*Panel B

Log earnings

Women with young children

7.747.407.52Women without young children

7.807.487.58Men with young children

8.118.628.40Men without young children 7.95*7.91*7.92*

Note:Calculation is based on men and women 25–35years old.

*Indicates that Pearson Chi 2test is signi?cant at the 1%level.

W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725715

Table3

Spousal income and men and women’s employment selection,1992,2002,and2009.Source:NBS Urban Household Survey data1989–2009;author’s own calculation.

Spousal income quintiles

12345

Panel A

Female employment rate(%)

199285.2293.8891.1490.9191.97 200267.9879.9580.4277.9079.88 200960.0371.2374.7074.8777.34

Panel B

Male employment rate(%)

199291.5097.7399.2198.1899.43 200286.4191.1194.0095.1193.89 200983.4289.6491.0893.0392.81

Note:The calculation is based on a matched set of husbands and wives.The number in each cell shows married women or men’s employment rate by spousal income quintile.Spousal income is annual labor income in RMB Yuan,and is divided into5quintiles,with1–5indicating the lowest to the highest 20%of income earners.

If there is a positive selection into employment,non-workers would earn a lower wage than workers even if they worked.In such a case r is less than1.The actual average wage for each subgroup with characteristics x can be calculated from the ob-served average wage via the following equation:

EeW j xT?EeW j x;E?1T?rte1àrTPexT e1T

Here P(x)=P(E=1|x)is the employment rate for the subgroup.

The true gender pay gap can be derived from Eq.(1):

EeW mTàEeW fT??EeW m j E m?1TàEeW f j E f?1T àe1àrT?e1àP mTEeW m j E m?1Tàe1àP fTEeW f j E f?1T e2TIf both the employment rate and observed mean wage are higher for men than women,i.e.,P m>P f and E(W m|E m=1)>-E(W f|E f=1),which is a common case,the sign of(1àP m)E(W m|E m=1)à(1àP f)E(W f|E f=1)is,thus,not determined.

We simulate three scenarios where r=0.9,0.7,and0.5,using male and female employment rates and earnings of workers from our data.Fig.3shows the simulated gender pay gaps from1988to2009.The results support that the raw gender pay gap is underestimated.In addition,as the gender employment gap rises over time,the extent to which the gender pay gap is underestimated increases.For a given year,the smaller r is(i.e.,the lower the shadow wage for the non-working),the greater the extent to which the gender pay gap would be underestimated.

4.2.Estimating gender pay gaps with Heckman’s selection-correction method

We adopt two parallel approaches to correct for non-random employment selection in estimating gender pay gaps:Heck-man’s selection-correction method;and the bound method.Instrumental variables(IV)are needed in Heckman’s sample-selection model(Heckman,1979;Mulligan and Rubinstein,2008;Beblo et al.,2003).The instrumental variables should be able to predict the employment probability but are uncorrelated with wages after counting for observables.The IV we use is a dummy variable indicating whether an individual has a young child aged66years.This variable is widely used in the relevant literature as an IV for employment selection(Mulligan and Rubinstein,2008).However,the validity of this IV has not been fully tested in China.

To demonstrate the validity of this IV for our sample,we report the employment rate for men and women both with and without a young child(Table1and Fig.A2).Our calculation is based on the sample of men and women aged25–35years.16 Table1shows that among those in that category,women without a young child have a higher employment rate than those with a young child.The difference is less than1%point,but is statistically signi?cant at the1%level,based on the data from all years. We also divide the data into two periods,the1990s and2000s,and?nd that the impact of having a young child on females’employment is more evident in the2000s.

For men,having a young child had a different impact on the employment probability and earnings than for women.The calculations show that men with a young child are more likely to work and have higher earnings than those without a young child.This?nding indicates that having a young child may motivate men to work harder in China.Fig.8shows further

16Pooling people of all ages in the calculation could confound the result.Because individuals with a young child are mostly aged25–35years,while those without a young child are older,the employment rate differences between them could be due to age rather than having a young child.

W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725717

and gender pay gap bounds.Source:NBS Urban Household Survey data1989–2009;author’s own

and estimated upper and lower bounds of the gap with employment selection.The raw gender

earnings.Earnings are annual earnings in RMB Yuan.

evidence of the lower employment rate for women with young children in some years.We perform statistical tests on the signi?cance of the IV with the?rst-stage Heckman regression,providing more rigorous support for the relevance of IV.17 4.3.Estimating the bounds to the gender pay gap with employment selection

Since non-workers’wages are not observed,we need to estimate the non-workers’shadow wage.Although shadow wages can be estimated,a direct method would generally require restrictive assumptions.However,a series of bounds of the gender pay gap can be estimated with presumably less restrictive assumptions.Instead of obtaining a point estimate to the corrected gender pay gap,the bound method would only provide an upper and lower bound to the gender pay gap 17If F-statistics on the joint signi?cance of all excluded variables in the?rst-stage regression is greater than10,or in the case of a single IV,t-statistics is greater than3.2,the IV is considered to be relevant.

with non-random employment selection taken into account (Manski,1994;Blundell et al.,2007).In the following we pro-vide only the heuristics of the bound methods.For the detailed derivation,readers may refer to Blundell et al.(2007).

The worst-case bounds are the bounds that entail no assumption.The rationale is as follows:we notice that the cumu-lative distribution function (cdf )of the complete population,including both working and non-working people,F (w|x ),is a weighted average of the cdf s of workers F (w |x ,E =1)and non-workers F (w |x ,E =0).The weight is the conditional employ-ment probability,P (x )=P (E =1|x ).That is,

F ew j x T?F ew j x ;E ?1TP ex TtF ew j x ;E ?0T?1àP ex T e3TThe cdf for workers and the conditional employment probability can be estimated from the data,but the cdf for non-work-ers is unidenti?ed.However,since the cdf for non-workers is between 0and 1,we replace F (w |x ,E =0)in Eq.(3)with 1and get the upper bound to F (w |x ).If we replace it with 0,we get the lower bound.As a result,we obtain the following inequality:

F ew j x ;E ?1TP ex T6F ew j x T6F ew j x ;E ?1TP ex Tt1àP ex Te4TEq.(4)can then be translated to worst-case bounds on the wage quantiles for men and women,respectively,and then the bound to the gender pay gap at each quantile.

The preceding worst-case bounds are universally correct,but could be too crude and hence uninformative.To tighten the bounds,one can impose a positive selection assumption.The positive selection assumption can be translated to a stochastic dominance premise,which suggests that the cdf of workers would dominate that of non-workers.However,we need to point out that while the assumption of positive selection is generally plausible,it is not incontrovertible and can fail for certain subgroups.For instance,if more capable 20-year-old persons choose to study in schools (i.e.,positive selection into education),the shadow wages for this particular age subgroup will be higher than the observed wages.18Thus,the empirical results following the stochastic dominance assumption need to be embraced with caution.In the case that this assumption holds,we can deduce:

(a) 1992 junior high or below (d) 2002 junior high or below (b) 1992 high school (e) 2002 high school (c) 1992 college

(f) 2002 college

(g) 2009 junior high or below (h) 2009 high school (i) 2009 college

gender pay gaps and bounds for age–education subgroups,1992,2002,and 2009.Source:NBS Urban Household Survey data own calculation.Note:The ?gure shows the raw gender pay gap and the upper and lower stochastic-dominance bounds for each gender pay gap is measured by male–female differences in median log (earnings).Earnings are annual earnings in RMB Yuan.

18We thank a referee for his/her insightful point.

718W.Chi,B.Li /Journal of Comparative Economics 42(2014)708–725

W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725719 Few j x;E?1T6Few j xT6Few j x;E?1TPexTt?1àPexT e5TThe left bound is tighter than the previous worst-case version.This transcends to tighter bounds to the gender pay gap.

IVs can be employed to tighten the bounds as well.IVs are determinants of the employment,which,on the other hand,are conditionally independent of the wage,i.e.,F(w|x,z)=F(w|x)The intuition of IV bounds is that we can deduce similar inequal-ities to(4)with respect to F(w|x,z)In general,the bounds for F(w|x,z)derived in this way will depend on z.But,because of the IV assumption,F(w|x,z)does not depend on z per se.Thus,the maximum of the lower bounds of F(w|x,z)over z will give a tighter lower bound to F(w|x,z)(equivalently,F(w|x))than the worst-case bound.Similarly,the minimum of the upper bounds of F(w|x,z)over z will give a tighter upper bound to F(w|x).

The same IV variable,the presence of young children,is used in the IV bounds estimation as in Heckman’s selection-cor-rection model.While the Heckman method assumes the speci?c functional form for how the IV affects endogenous employ-ment variables,the IV bounds do not assume any functional form and thus are more robust.

So far our focused parameter is the conditional cdf F(w|x)from which(conditional)quantiles can be calculated.This will give us results about the gender pay gap for various subgroups corresponding to particular values of x.When x is averaged over the entire sample,we obtain the gender pay gap bounds to the unconditioned cdf.

5.Results

5.1.Evidence of employment selection

Table2shows the gender employment gap and the gender pay gap by marital status,age,and education.Our focus is to compare male–female employment rates and earnings across groups.Therefore,we show the detailed results only for three years–1992,2002,and2009.Figs.A3–A5show the trend for subgroups for additional years.

We discover the following patterns from Table2.First,more educated individuals had a higher employment rate than less educated individuals.This is true for both men and women.This pattern became more pronounced in recent years.19For each of the three years,the gender employment gap and the gender pay gap were narrower for the better educated.This?nding may be related to labor market conditions in China.Although college enrollment has increased dramatically in recent years,resulting in a signi?cant increase in the supply of college-educated workers,there is still a shortage of highly skilled professionals.20Un-der such labor market conditions,skilled female workers may be less likely to face employment and wage discrimination,since employers may?nd it dif?cult to replace them with enough skilled male workers.

Second,we?nd an interesting pattern with respect to marital status.In general the employment rate was lower for sin-gles.This is likely because of their young age and student status.However,single women had a higher employment rate than single men.Single women also had relatively higher pay,so that the gender pay gap was markedly smaller for singles.

Third,regarding age,we?nd that the employment rate generally increased with age for both men and women.For the youngest group(aged18–22years),the employment rate was fairly low and became even lower in recent years.This is also likely due to increasing college availability and enrollment.Interestingly,both gender employment and pay gaps were the smallest for the youngest group;women from this age group actually had a higher employment rate than their male coun-terparts,even though this pattern attenuated over time,and for this group female earnings were close to male earnings.Over time,the second youngest group(aged23–27years)started to show a similar pattern.

The?nding that young single women have a higher employment rate than their male counterparts while older married women have a signi?cantly lower employment rate than their male counterparts,suggests that women’s employment deci-sion is more likely to be impacted by their family characteristics.While younger single women are equally likely to partic-ipate in the labor market as men of their age,the decision of older married women to work is more likely to be affected by the situation of their spouse and the presence of young children.Appendix Figs.A3–A5con?rm that both the gender employ-ment and pay gaps are wider for the less-educated,and narrower for the young unmarried group.

To further provide evidence for employment selection,we use the matched set of husbands and wives to show the rela-tionship between the employment rate and spousal income.We calculate the employment rate for men and women by spou-sal income quintile.Spousal income is divided into?ve quintiles:the bottom20%;20–40%,40–60%,60–80%,and the top20%. Table3shows that the employment rate of married men is not negatively affected by higher spousal income.Likewise,we do not?nd that women with a relatively wealthier husband are less likely to work.

Tables2and3show descriptive results regarding employment selection.For more rigorous evidence,we performed a probit regression of employment selection(Table4).The dependent variable is a dummy variable that indicates whether one works.Explanatory variables include age,education,the presence of young children in the household and spousal in-come.The regression results support our conclusions that the employment rate is higher for those with higher education levels.The presence of young children in the household affects the employment probability of women more negatively than men.The regression results also suggest that,when all other factors have been controlled for,the impact of spousal income on employment probability was negative,but was statistically insigni?cant for both men and women during the earlier 19The only exception is for men in1992,when men with a primary education had a90%employment rate while those with a secondary education had a83% employment rate,and the earnings of the two groups were similar.

20‘‘China’s looming talent shortage’’,Diana Farrell and Andrew J.Grant,McKinsey Quarterly,November2005.

period under study.However,the effect of spousal income has become signi?cantly negative for women in recent years.This suggests that the income effect has increasingly affected married women’s decision to work in urban China.21

5.2.Heckman’s selection-correction results

We estimate Heckman’s selection-correction model for each year,using the presence of young children in a household as an IV.A test for signi?cance of the IV in the ?rst-stage regression suggested that it is relevant for most of the years after

2000.

21

The regression result regarding the impact of spousal income (Table 4)differs from the descriptive results in Table 3.The differences are likely because the education level of women was not controlled for in the descriptive analysis.Women with spouses that have higher incomes are also likely to have a higher education level,which leads to a higher employment probability.Women of the same education level are less likely to work when their spouses have higher incomes.720W.Chi,B.Li /Journal of Comparative Economics 42(2014)708–725

W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725721

The Likelihood Ratio test of non-selectivity in the Heckman regression was rejected for most of the years,suggesting that selectivity is present and the OLS estimates are biased.

To compare the OLS and Heckman models,we plotted the coef?cient estimate for the gender dummy variable in both the OLS regression and the second-stage Heckman regression(Fig.4).The Heckman method provides a point estimate to the corrected gender pay gap.Fig.4shows that the OLS regression underestimates the gender pay gap after the year2000.Since we used the logarithm of earnings as the dependent variable,the OLS estimate suggests that after2005men earned34–38% more than women.However,results from the second-stage Heckman regression indicate that men earned38–43%more. Thus,the OLS estimate is lower than the Heckman estimate by4–5%points.22

5.3.The bounds of the gender pay gap

Fig.5shows the raw gender pay gap and the bounds estimates for1988–2009.The worst-case bounds are the least infor-mative,as the lower bound crosses zero for most of the years from1995to2009.To tighten the bounds,we assume the po-sitive selection into employment.Including this assumption tightens the lower bound of the gender pay gap signi?cantly, making it above zero for all years.Before1995,male and female employment rates were high and the gender employment gap was small;hence the bounds were rather tight.After2000,the gender employment gap widened signi?cantly,and the bounds became loose.As can be seen,however,the lower bound remained steady while the upper bound increased.In2009, the lower and upper bounds with the assumption of stochastic dominance were0.02and0.88,respectively,in contrast with the raw gender pay gap,0.27.

We then use the IV bounds of women’s earnings and the stochastic dominance bounds of men’s earnings to create the gender pay gap bounds.These estimated bounds are shown in Fig.5as the‘‘IV bounds’’.The IV bounds are tighter than the stochastic dominance bounds.After2000,the lower IV bound almost overlaps with the raw gap.For example,in 2009the IV lower and upper bounds are0.28and0.75,respectively,while the raw gender pay gap is0.27.

22That is12–14%by calculation,e.g.,(38à34)/34=12%.

722W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725

The bound method provides useful information in two ways.First,the bound estimates are consistent with the simulation results presented in Section4,indicating that as the employment rate falls and the gender employment gap widens,non-random employment selectivity becomes a more important factor affecting the gender pay gap estimate.Second,although the bound method does not provide a point estimate to the true gender pay gap,which can be achieved by Heckman’s selec-tion-correction method under more stringent model assumptions,it still produces useful range estimates of the focus parameters under certain assumptions.

5.4.Bounds for subgroups

Furthermore,we estimate the gender pay gap bounds for age–education subgroups for1992,2002,and2009(Fig.6).In 1992,the bounds are quite tight for most of the groups,except for age20and age50groups with an education of junior high or below,and the age20group with a high school education.For2002and2009,the bounds are still relatively tight for col-lege-educated individuals aged30–50years.The bounds are generally loose for the groups with no more than high school education.

Before the mid-1990s,employment in urban areas was concentrated in the state sector.Employment was secured and layoffs were rare.The employment rate was high across many age groups and education levels,except for the young, who enrolled in college,or older groups,who retired.The employment rate was high for both men and women.Thus, non-random selection into employment was not an important factor affecting the gender wage gap before1995.Since this time,state sector employment has been signi?cantly reduced,and layoffs have increased.The employment rate has fallen for both men and women.Women are also more likely to selectively withdraw from the labor force.Therefore,employment selectivity has become more signi?cant,leading to the wider bounds of the gender pay gap in the late1990s and2000s.

In general,the bounds are tighter for college graduates than for groups with less education.This is because,especially in recent years,the employment rate is higher and the gender employment gap is smaller for college graduates.Although col-lege graduates face increasing dif?culty?nding employment because of the rising supply of college graduates in recent years

W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725723

Table A1

Sample description.Source:NBS Urban Household Survey data1989–2009;

author’s own calculation.

The number of observations

198811,286

198910,502

199011,144

199110,967

199212,393

199311,788

199411,854

199511,867

199611,888

199712,058

199812,021

199912,102

200011,884

200111,967

200228,299

200331,930

200434,327

200536,052

200636,306

200736,267

200835,088

200934,549

Total436,539

724W.Chi,B.Li/Journal of Comparative Economics42(2014)708–725

Table A2

Having a young child by age.Source:NBS Urban Household Survey data1989–2009;author’s own calculation.

Men Num.of obs.%Having a young child Women Num.of obs.%Having a young child

<25Years old39,597 1.32<25Years old38,427 4.03

25–3539,34743.9825–3547,20042.32

>35143,299 3.66>35128,669 1.88

Table A3

Annual earnings,hourly wages,and working hours,2003–2006.Source:NBS Urban Household Survey data2003–2006;author’s own calculation.

Year Hours worked last month Log(hourly wage)Difference in log(wage)Log(annual earnings)Difference in log(earnings) Men Women Men Women Men Women

2003180.6177.2 1.64 1.360.289.208.840.36

2004180.8177.3 1.82 1.510.319.388.980.40

2005181.4178.3 1.93 1.620.319.509.090.41

2006180.7177.8 2.04 1.750.299.629.220.40

Note:Hours worked last month is only available for2003–2006.Since yearly data is collected and reported to NBS in the end of a calendar year,hours worked in last month is referred to hours worked in December.Hourly wages are equal to annual earnings divided by hours worked last month multiplied by12.Both hourly wages and annual earnings are in RMB Yuan.Logarithm is taken for hourly wages and earnings.The differences in log(hourly wages)and log(annual earnings)between men and women are calculated.

(Whalley and Xing,2011),our data show that college graduates still have a higher employment rate than less-educated individuals.In particular,female college graduates have a higher employment rate than less-educated women.Therefore, employment selectivity does not in?uence the gender wage gap as much for college graduates.

6.Conclusion

Men and women often have different employment rates,and because of non-random selection into employment,the gen-der pay gap estimate is likely to be biased.Our article is motivated by the observation that little is known about the male–female employment rate gap in China,or the extent to which the gender employment gap causes the bias in the gender pay gap.

We show the trend in the gender employment gap and gender pay gap in China during the period1988–2009,and esti-mate the gender pay gap using Heckman’s selection-correction method.The Heckman results suggest an underestimation of the raw gender pay gap by12–14%for the years2005–2009.The worst-case bounds are uninformative because the lower bound crosses zero for many of the years.When stochastic dominance of the earnings of workers over non-workers is as-sumed,the lower bound is tightened signi?cantly.We further tighten the bound by using the IV–whether an individual has a young child aged less than or equal to6years–which is often used to correct employment selection.However,even with these tightened bounds,the raw gender pay gap is between the estimated lower and upper bound for many of the years, which leads to a more modest conclusion that the bounds estimates support a possible mis-estimation,rather than an underestimation,of the raw gender pay gap.

Our article contributes to the growing literature on the gender pay gap in transition countries,speci?cally in China.Our study has a couple of important policy https://www.doczj.com/doc/455177228.html,bor policies that focus on narrowing the wage gap between men and women should also look at skill composition of the male and female labor force because of employment selectivity. Policymakers should be aware of the implications of such an employment selection for the gender wage gap estimate.Fu-ture research is needed to examine the determinants of labor force participation and employment for both men and wo-men,and to identify the causes of the widening gender employment gap.This will lead to a better understanding of changes in the skill levels of men and women in the labor force and the effect that such changes have on the gender wage gap in China.

Acknowledgments

Wei Chi would like to acknowledge?nancial support from National Natural Science Foundation of China(Grant No. 71121001),and Tsinghua University Research Grant(Grant No.2010THZ0).Bo Li acknowledges support from National Natural Science Foundation of China(Grant No.71072012,71272029).

Appendix A

See Figs.A1–A5.Tables A1–A3.

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硬件类常用英语词汇

硬件类常用英语词汇 下面是小编整理的硬件类常用英语词汇,希望对大家有帮助。 计算机英语词汇大全 常见硬件篇 CPU:Central Processing Unit,中央处理单元,又叫中央处理器或微处理器,被喻为电脑的心脏。 LD:Laser Disk,镭射光盘,又称激光视盘。 CD:Compact Disc,压缩光盘,又称激光唱盘。 CD-ROM:Compact Disc-Read Only Memory,压缩光盘-只读记忆(存储),又叫“只读光盘”。 VCD:Video Compact Disc,视频压缩光盘,即人们通常所说的“小影碟”。 RAM:Random Access Memory,随机存储器,即人们常说的“内存”。 ROM:Read-Only Memory,只读存储器。 Seagate:美国希捷硬盘生产商。Seagate英文意思为“通往海洋的门户”,常指通海的运河等。 Quantum:英文含意为“定量,总量”。著名硬盘商标,美国昆腾硬盘生产商(Quantum Corporation)。

Maxtor:“水晶”,美国Maxtor硬盘公司。 PCI:Peripheral Component Interconnection,局部总线(总线是计算机用于把信息从一个设备传送到另一个设备的高速通道)。PCI总线是目前较为先进的一种总线结构,其功能比其他总线有很大的提高,可支持突发读写操作,最高传输率可达132Mbps,是数据传输最快的总线之一,可同时支持多组外围设备。PCI不受制于 CPU处理器,并能兼容现有的各种总线,其主板插槽体积小,因此成本低,利于推广。 EDO:Extended Data Output,扩充数据输出。当CPU的处 理速度不断提高时,也相应地要求不断提高DRAM传送数据速度, 一般来说,FPM(Fast Page Model)DRAM传送数据速度在60-70ns,而EDO DRAM比FPM快3倍,达20ns。目前最快的是SDRAM(Synchronous DRAM,同步动态存储器),其存取速度高 达10ns。 SDRAM:Synchronous Dynamic Random Access Memory,同步动态随机存储器,又称同步DRAM,为新一代动态 存储器。它可以与CPU总线使用同一个时钟,因此,SDRAM存储 器较EDO存储器能使计算机的性能大大提高。 Cache:英文含义为“(勘探人员等贮藏粮食、器材等的)地窖; 藏物处”。电脑中为高速缓冲存储器,是位于CPU和主存储器 DRAM(Dynamic Randon Access Memory)之间,规模较小,但 速度很高的存储器,通常由SRAM(Static Random Access

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