Determinants of the Wage Gap between Migrants and Local Urban Residents in China: 2002-2013

Abstract

This study explores the determinants of the wage gaps between rural-to-urban migrants and local urban residents in China from 2002 to 2013. Using the Chinese Household Income Project (CHIP) 2002 and 2013 survey data, the study provides an analysis based on the Oaxaca-Blinder decomposition model. The estimation results indicate that individual characteristics, regional location, and the distribution differences among industries and public and private sectors were the main factors causing the wage gaps. Furthermore, the main factors causing the wage gaps between 2002 and 2013 are human capital factors, industry sectors, and gender discrimination.