Determinants of Wage Gap Between Public Sector and Private Sector

  • Xinxin Ma


It has been argued that China’s economic reform is incomplete. For example, most small state-owned enterprises (SOEs) were privatized, but the governance of large SOEs scarcely changed. Did ownership reforms influence wage structure in China? Chapter  3 focuses on the wage gaps between the public sector and private sector. It analyzes the changes in wage structures and determinants of wage gap between public sector and private sector during the period from 1995 to 2013. It is found that with the progress of market-oriented economic reform, labor productivity characteristics based on individual human capital such as schooling years are more highly rewarded, which shows that market mechanisms began to function and correct the distortion of wage decisions in China during the economic transition period.


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© The Author(s) 2018

Authors and Affiliations

  • Xinxin Ma
    • 1
  1. 1.Hitotsubashi UniversityTokyoJapan

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