Abstract

The importance of a sustainable labor market is a critical and fundamental point for many developing countries, where global competitiveness is based on cheap labor. The aim of this empirical–analytical study, framed in China in the research context, is to approach this hot topic from the lens of household wage differences between generations. Using cross-sectional data, consisting of the China Dynamic Migrant Survey and Oaxaca-Blinder decomposition methods and quantiles, to analyze the data results confirmed the differences in wages between two generations of peasant and urban workers. Moreover, a distinctive tapering in the pay gap occurred among the new generation. Fundamentally, a big gap exists in the rate of return on education between urban and rural labor. According to the results of quantile decomposition, the old generation of peasant and urban workers demonstrate anti-discriminatory phenomena at very low and very high scores.

Highlights

  • With the continuous promotion of marketization, industrialization, and urbanization, a high number of surplus rural labor force keeps flowing into cities and towns for employment, forming the group of “migrant workers” with Chinese characteristics.The return rate of education investment of migrant workers in the urban labor market is significantly lower than that of urban workers, after controlling for gender, age, health level, industry, and other factors [1,2]

  • The research focuses on two aspects. One of these aspects is the differences in individual characteristics between the new and old generations of migrant workers [3,4,5]; these studies compare the differences in individual characteristics, such as human capital, employment stability rate, the gender ratio, and the health status of new and old farmers and migrant workers

  • In terms of characteristic differences, the differences caused by individual endowments between old and new generations of migrant workers and urban workers increased with the increase in quantile

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Summary

Introduction

With the continuous promotion of marketization, industrialization, and urbanization, a high number of surplus rural labor force keeps flowing into cities and towns for employment, forming the group of “migrant workers” with Chinese characteristics. One of these aspects is the differences in individual characteristics between the new and old generations of migrant workers [3,4,5]; these studies compare the differences in individual characteristics, such as human capital, employment stability rate, the gender ratio, and the health status of new and old farmers and migrant workers. The existing research results contain relevant literature on the inter-generational differences among migrant workers, they rarely analyze the inter-generational differences in wage discrimination between migrant and urban workers. Based on the existing research gap, this study selected the latest data and used two regression methods and two wage difference decomposition methods to estimate and decompose the gender-specific urban and rural labor wage difference, aiming to analyze the gender differences in urban and rural household registration discrimination. This study is expected to enrich the understanding of the wage differences between different labor groups and provide particular reference suggestions for the government to formulate relevant policies

Literature Review
Empirical Research Design
Explanatory Variables
Descriptive Statistics
Salary Regression Equation Setting
Oaxaca–Blinder Decomposition Method
Quantile Decomposition
Analysis of Empirical Results
Analysis of the Results of Quantile Regression and Quantile Decomposition
Quantile
Coefficient
Tables and
Robustness Test
Decomposition
Theoretical Conclusions
Practical Conclusions
Findings
Limitations and Future Research Line
Full Text
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