Decomposing wage differentials between migrant workers and urban workers in urban China's labor markets

This paper looks at wage discrimination faced by China's rural–urban migrants. Using data from the China Urban Labour Survey, it uses standard wage decomposition techniques to measure the extent wage gaps between migrants and locals are attributable to migration. Because the survey covers five cities, the results allow for an investigation regarding how much variation in discrimination there is. Unlike previous studies of wage discrimination in China, this research includes a more full measure of remuneration by including non-financial benefits as well as bonuses earned. The results suggest that migrants still face a significant amount of discrimination, but that this varies a lot between cities. ► Investigates the extent of wage discrimination Chinese migrants face. ► Incorporates data about insurance and bonuses to better measure remuneration. ► Data covers five large cities in China. ► Migrants still face significant levels of discrimination. ► But the extent of discrimination varies between cities.