The effect of the state sector on wage inequality in urban China: 1988–2007

This paper examines the effect of the public sector and state-owned enterprises (SOEs) on wage inequality in urban China using China Household Income Project data. It applies quantile regression analysis, the Machado and Mata decomposition to investigate how urban wage inequality was affected by the changes in wage structure and employment shares of the public sector and SOEs. We find that since the radical state sector reforms designed to reduce overstaffing and improve efficiency in the late 1990s, urban wage gaps were narrowed due to the reduction in the employment share of the state sector; the wage premium of the state sector in comparison with the non-state sector increased significantly; and changes in the wage structure of the labour market caused the rise in urban wage inequality

Building High-Quality and Value-Based Service Delivery

At a meeting in July 2014 in Beijing, we committed to working together on a flagship report that would help set the direction for health sector reform in China. This report, Deepening Health Reform in China, is the result. Using the successful model offered by previous flagship reports like China 2030 and Urban China, this report primarily offers a blueprint for a new direction for China’s health sector. The report’s main theme is the need for China to transition its healthcare delivery system toward people-centered, quality, integrated care built on the foundation of a strong primary healthcare system

RISING WAGES: HAS CHINA LOST ITS GLOBAL LABOR ADVANTAGE?

We document dramatic rising wages in China for the period 1978-2007 based on multiple sources of aggregate statistics. Although real wages increased seven-fold during the period, growth was uneven across ownership types, industries and regions. Over the past decade, the wages of state-owned enterprises have increased rapidly and wage disparities between skill-intensive and labour-intensive industries have widened. Comparisons of international data show that China's manufacturing wage has already converged to that of Asian emerging markets, but China still enjoys enormous labour cost advantages over its neighbouring developed economies. Our analysis suggests that China's wage growth will stabilize to a moderate pace in the near future. Copyright 2010 The Authors. Pacific Economic Review 2010 Blackwell Publishing Asia Pty Ltd