Wage Differentials in a Less Development Country Literature Review

University of Essex |
The Determinants Of Gender Wage Differentials In A Less Developed Country-A Chinese Case study. |
Literature Review and Project Plan |
STUDENT ID: 1103767 |

Unlike with some developed countries like the US which has been experiencing a narrowing gender wage gap. China, the worlds’ second largest economy that has been going through a rapid growth of industrialization, is experiencing a widening gender employment pay gap in recent decades. However, besides the rapid industrialization, there are many other diverse causes for this gap. Issues relate to rural-urban migration, job selection and other factors such as education, working experience, human capital endowment, etc. I will use a large, representative data set of households in China, to show that after the year 1980 the female rate of employment has been declining and the gender wage gap is growing. The communist party meeting in 1978 implemented the idea of China’s reform and Opening which changed the trajectory from the Maoist ideology that was based on a central planning market approach to the one where the market drives the economy. These actions however contributed to the result of deregulation of wage setting policies and, potentially, allowed discrimination to take place in the labor market (Jolliffe and Campos, 2005). In this study, we shall focusing on the causes of gender wage gap in China related with some empirical research and how the impact of the China’s economic reform could affect the gap.    

                        Literature Review
After two decades of reform and Opening-up, China has been yielded both positive experience and negative aspects. The issue of gender wage gap differentials has drawn considerable attention from all over the world. On the one hand, In contrast with countries like Russia and Ukraine where the gender wage gap remained unchanged or even declined in transition period,...