Papers RESEARCH

Analysis of Income Gap Between Urban Workers and Rural-to-Urban Workers on the Background of Rural Revitalization

The Perspective of Occupation Segregation

Lena

2019-04-18 07:31

Chen Zhongbin, Chen Zhaozhou
Journal of Xi’an University of F

Abstract: Using the survey data from CHIP2013, this paper analyzes the effects of occupation segregation on difference in income between workers with different Hukou system (household registration system) based on Brown decomposition Method. The research shows that compared to urban workers, rural-to-urban workers with Hukou in other areas are suffered from occupation discrimination, while workers with local rural Hukou are protected, which means that there exists some degree of exclusionary discrimination in worker recruitment of enterprises. Difference in income of 35.2%, 4% between urban workers and workers with local rural Hukou, and migrant workers with rural Hukou in other area are respectively explainaed by inter-occupation income gap. Difference in income of 64.8%, 44.6% between urban workers and workers with local rural Hukou, and migrant workers with rural Hukou in other area are respectively explained by the intra-occupation income gap. On the whole, worker heterogeneity is the main reason of income gap of workers in urban and rural areas. This paper gives a suggestion of improvement in human capital through developing the high-school and tertiary education and professional training in rural areas.

Keywords: employment of migrant workers; occupation segregation; income decomposition; Hukou discrimination; rural revitalization; rural human capital

The Chinese version appeared in Journal of Xian University of Finance and Economics, 2019(02).


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