2023-09-28 14:46:10 +00:00
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abstract: 'Labor market discrimination is an important issue in developing
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countries where path-dependent institutions have been dominant, while
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effective institutional arrangements and policies have been hidden by
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local customs and culture. However, the existing applications of
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classical Blinder-Oaxaca decomposition face criticism for their
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imprecise understanding of the factors affecting institutional
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discrimination in labor markets, as well as for their lack of power in
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formulating well-targeted anti-discrimination policies. Following Oaxaca
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(1973), we propose a new method to decompose the total discrimination
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index (TDI) to analyze employment and wage discrimination in the labor
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markets of developing countries. The TDI is decomposed into the
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employment discrimination index (EDI) and the wage discrimination index
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(WDI), then into the underpayment index to majorities (UPI) and the
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overpayment index to minorities (OPI). We apply this method to the
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institutional discrimination against rural migrants in China''s urban
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areas. Using national representative data from 2002 to 2013, we have
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found that, 1) the TDI increased quickly after China entered the WTO,
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then dropped after anti-discrimination policies were implemented. 2) The
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TDI is mainly determined by the UPI, while the TDI''s fluctuation is
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mainly determined by the WDI. Our method provides insights into the
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changing composition of employment and wage discrimination and their
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respective labor market outcomes in developing countries. As a result,
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appropriate policy measures may be developed accordingly. (C) 2018
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Elsevier Ltd. All rights reserved.'
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affiliation: 'Zhang, Y (Corresponding Author), 600 Guoquan Rd, Shanghai 200433, Peoples
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R China.
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Chen, Yiu Por (Vincent), Univ Calif Santiago, Sch Global Policy \& Strategy, Santiago,
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CA USA.
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Zhang, Yuan, Fudan Univ, China Ctr Econ Studies, Shanghai, Peoples R China.'
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author: Chen, Yiu Por (Vincent) and Zhang, Yuan
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author-email: zhangyuanfd@fudan.edu.cn
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author_list:
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- family: Chen
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given: Yiu Por (Vincent)
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- family: Zhang
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given: Yuan
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da: '2023-09-28'
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doi: 10.1016/j.worlddev.2018.05.012
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files: []
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issn: 0305-750X
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journal: WORLD DEVELOPMENT
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keywords: 'Two-tier labor market; Labor market discrimination; Underpayment to
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minorities; Overpayment to majorities; Rural-urban labor migration;
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China'
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keywords-plus: 'LABOR-MARKET DISCRIMINATION; STATISTICAL DISCRIMINATION; OCCUPATIONAL
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SEGREGATION; RURAL MIGRANTS; DETECTING DISCRIMINATION; EARNINGS
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DIFFERENTIALS; FIELD EXPERIMENT; GENDER; INEQUALITY; GAP'
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language: English
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month: OCT
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number-of-cited-references: '84'
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pages: 1-12
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papis_id: fc7a83ff18dbf24cbf8755cbfc244000
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ref: Chen2018decompositionmethod
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times-cited: '8'
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title: A decomposition method on employment and wage discrimination and its application
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in urban China (2002-2013)
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000440118800001
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usage-count-last-180-days: '2'
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usage-count-since-2013: '55'
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volume: '110'
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web-of-science-categories: Development Studies; Economics
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year: '2018'
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