A study of the income difference between tourism formal and informal employment in China

Abstract

Income is an important indicator to test whether the labor market is equal. Based on the data of Chinese General Social Survey (CGSS) from 2010、2013 and 2015, this paper uses JMP decomposition method to decompose the income difference between formal and informal employment in tourism. The results show that the income difference between the formal employed and the self-employed increased by 17.4% from 2010、2013 and 2015, while the income difference between the formal employed and the informal employed decreased by 16.4%. The former is attributed to the difference in predicted gap, while the latter is attributed to the quantity effect, price effect and difference in residual gap. In view of the relevant conclusions, it is of great significance to improve the human capital of tourism informal employees to narrow the income gap.