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Income Disparity between Migrants and Locals in Urban China
Wen Xingxiang
Population Research
2014, 38 (2):
61-70.
Although China has made great progress in urbanization,there remain a range of problems and challenges. One is the income disparity between migrant workers and urban locals. This paper utilizes the RUMiC baseline data to empirically analyze the income disparity problem using unconditional quintile and RIF regression decomposition method. The data show that the income gap increases from low to high quintile. The proportion of income disparity explained by structural effects also increases with the growth of income. However,there exists favorable income determination mechanism for migrant workers in the low income quintile. The main factors that contribute to the composition effects are human capital and occupational /industrial differences. Implications for policies in reducing income disparities are discussed.
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