Abstract
We consider the effect of geography, and in particular market access, on wages using individual data from 56 Chinese cities in 11 different provinces. By applying New Economic Geography theories to individual-level survey data, we evaluate the extent to which market proximity can explain inter-individual wage heterogeneity and growing wage inequality within Chinese provinces. Based on 1995 data on around 6,000 Chinese workers, and after controlling for individual skills and local factor endowments, we find that a significant fraction of the inter- individual differences in returns to labor can be explained by the geography of market access. We find greater wage sensitivity to market access for workers in private, and particularly foreign-owned, firms.
| Translated title of the contribution | Market acces and individual wages in china: Firm owership matters |
|---|---|
| Original language | French |
| Pages (from-to) | 653-662 |
| Number of pages | 10 |
| Journal | Revue Economique |
| Volume | 59 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 2008 |
Research programs
- EUR ESE 37
