Wage flexibility in the Chinese labour market, 1989–2009

2016-08-19T10:52:05Z (GMT) by Lili Kang Fei Peng
<p>Wage flexibility in the Chinese labour market, 1989–2009. <i>Regional Studies</i>. China’s bureaucratic wage determination system is gradually being replaced by a market-based system, leading to a novel version of a dual labour market. This paper studies wage flexibility in this dual market. Its principal findings are as follows: wages in both sectors have become less responsive to changes in official registered unemployment, with an alternative market-based measure of unemployment becoming more relevant; there is evidence of convergence of flexibility between the two sectors; the wages of women exhibit greater flexibility than those of men; and there is evidence of differences in wage flexibility between workers who have urban residential rights and rural migrants.</p>