Calculation Of Wage Premium Of Industries And Ownership In China

Income gap has always been a hot topic,and seeking for job can not avoid the choice of industry and ownership.With the improvement of China’s market-oriented level and the adjustment of labor supply and demand structure,it is of great practical significance to study the wage premium level and its changing trend of China’s industries and ownership.This paper combs the existing literature from both theoretical and empirical perspectives.Compared with the existing research,this paper provides a new perspective for the study of wage premium between industries from the deviation of industrial structure and employment structure;the selected data of China family tracking survey(CFPS)database is relatively new and has a strong timeliness;a more comprehensive analysis of the factors affecting wage differences and their impact on the employment structure is made.Furthermore,this paper systematically studies the wage premium caused by the characteristics of employment structure among industries,the difference of wage determination mechanism between different ownership systems and the distribution of wage difference.As for the wage difference between different departments,this paper holds that it is necessary to analyze the specific problems from different angles.This paper argues that the wage premium among industries is partly due to the mismatch between supply and demand of labor force,which is manifested as the deviation of employment structure and industrial structure.Based on the regression results of Mincer wage equation,the wage premium among industries is calculated,and the results are basically consistent with the hypothesis of this paper.There is a negative wage premium in the the first industry and life service industry and public service industry of the third industry,and a positive wage premium in the second industry and the producer service industry of the third industry.The robustness test is carried out by replacing the explained variables,eliminating extreme values and so on.Generally speaking,if we regard the wage structure of non-state-owned sector as the level of marketization,the decomposition results based on conditional mean show that the employees in stateowned sector enjoy the positive wage premium brought by their wage mechanism,but with the improvement of marketization,the proportion of reasonable components in wage gap is increasing.Especially in state-owned enterprises,the marketization of wage level will be basically realized.However,the main beneficiaries of the wage mechanism of the state sector are the low-income groups,and the high-income groups are actually underpaid.Finally,this paper verifies the robustness of the above conclusions by changing the variables of years of education,using RIF regression method and using switching regression model to alleviate endogeneity.