Using 1987-2006panel data for China, we explore the dynamics of the skill premium. The present paper focuses on the skill premium as an explanation for why income differences are so large in China. Our empirics show t...Using 1987-2006panel data for China, we explore the dynamics of the skill premium. The present paper focuses on the skill premium as an explanation for why income differences are so large in China. Our empirics show that: the rise in the relative supply of skilled labor results in an increase, instead of a decrease, in the skill premium; domestic investment is not complementary with skill formation; the skill premium is higher in more developed provinces; economic openness facilitates an increase in the skill premium; whether foreign direct investment induces skill-based technology change or not, it drives up the skill premium. An array of policy prescriptions for reducing income differences and ensuring sustained economic growth are provided.展开更多
This study analyzes the transmission mechanism for the increase in the skill premium caused by international outsourcing through sln'H-biased technological change (SBTC). Using 2000-2013 panel data from 27 manufac...This study analyzes the transmission mechanism for the increase in the skill premium caused by international outsourcing through sln'H-biased technological change (SBTC). Using 2000-2013 panel data from 27 manufacturing industries in China, this study conducts both probit and Tobit tests and shows that international outsourcing led to SBTC in China's manufacturing industries. A positive correlation is found between international outsourcing and the increase in the skill premium in both static and dynamic models. For each 1-percent increase in the international outsourcing index, the skill premium will rise approximately 10 percent. This finding indicates the existence of a mechanism through which the effect of international outsourcing on the skillpremium is reinforced where SBTC is occurring. However, this may enlarge wage gaps within the same industry. Therefore, China should not only use the skill premium to promote the transformation and upgrading of industries benefiting from outsourcing and optimize the structure of employment but also prevent the negative effects of an increased skill premium.展开更多
Using detailed Chinese manufacturing firm production and trade data from 2000 to 2006,this study finds that offshoring significantly increases firms’average wages.First,using the quasi-natural experiment of China'...Using detailed Chinese manufacturing firm production and trade data from 2000 to 2006,this study finds that offshoring significantly increases firms’average wages.First,using the quasi-natural experiment of China's accession to the World Trade Organization,we investigate how a reduction in offshoring costs affects the manufacturing firm's wages and find that a productivity effect and a job-relocation effect are two possible channels.Second,the dynamic decomposition of industry-level wages indicates that the within-firm effect is 0.547,accounting for 31.5 percent of the total variation.Finally,a Mincer-type regression shows that offshoring also increases within-firm skill premiums.Our findings have strong implications for the government related to framing appropriate industrial policies to raise wages and reduce income inequality.展开更多
基金the National Science Foundation of China (No.70673072 and 70203008)the National Social Science Foundation (No.06 BJL 039) for financial support.
文摘Using 1987-2006panel data for China, we explore the dynamics of the skill premium. The present paper focuses on the skill premium as an explanation for why income differences are so large in China. Our empirics show that: the rise in the relative supply of skilled labor results in an increase, instead of a decrease, in the skill premium; domestic investment is not complementary with skill formation; the skill premium is higher in more developed provinces; economic openness facilitates an increase in the skill premium; whether foreign direct investment induces skill-based technology change or not, it drives up the skill premium. An array of policy prescriptions for reducing income differences and ensuring sustained economic growth are provided.
基金This research is supported by the Humanity and Social Science Foundation of the Ministry of Education of China (Grant Nos. 15YJA790056 and 15JJD790042).
文摘This study analyzes the transmission mechanism for the increase in the skill premium caused by international outsourcing through sln'H-biased technological change (SBTC). Using 2000-2013 panel data from 27 manufacturing industries in China, this study conducts both probit and Tobit tests and shows that international outsourcing led to SBTC in China's manufacturing industries. A positive correlation is found between international outsourcing and the increase in the skill premium in both static and dynamic models. For each 1-percent increase in the international outsourcing index, the skill premium will rise approximately 10 percent. This finding indicates the existence of a mechanism through which the effect of international outsourcing on the skillpremium is reinforced where SBTC is occurring. However, this may enlarge wage gaps within the same industry. Therefore, China should not only use the skill premium to promote the transformation and upgrading of industries benefiting from outsourcing and optimize the structure of employment but also prevent the negative effects of an increased skill premium.
基金This research was financially supported by the National Social Science Foundation of China(No.20AJY014)the Social Science Foundation of Jiangsu Province(No.20EYA002),and the Key Project of Philosophy and Social Science Research in Colleges and Universities in Jiangsu Province(No.2018SJZDA011)The authors thank two anonymous reviewers for their helpful comments and suggestions for improving this paper.
文摘Using detailed Chinese manufacturing firm production and trade data from 2000 to 2006,this study finds that offshoring significantly increases firms’average wages.First,using the quasi-natural experiment of China's accession to the World Trade Organization,we investigate how a reduction in offshoring costs affects the manufacturing firm's wages and find that a productivity effect and a job-relocation effect are two possible channels.Second,the dynamic decomposition of industry-level wages indicates that the within-firm effect is 0.547,accounting for 31.5 percent of the total variation.Finally,a Mincer-type regression shows that offshoring also increases within-firm skill premiums.Our findings have strong implications for the government related to framing appropriate industrial policies to raise wages and reduce income inequality.