THE RISE OF RURAL-TO-RURAL LABOR MARKETS IN CHINA

Table 7. Explaining Wages in Rural China__________________________________________________________________________

Dependent Variable: Log Wage

_______All Workers_______

Male Workers Only

Female Workers Only

__________1988

1995

__________1988

1995_________

_______1988

_______1995

(1)

(2)

(3)

(4)

(5)

(6)

N

(707)

(1143)

(448)

(635)

(259)

(508)

Incoming Labor^a

(1) 0.08 (1.36)

0.13 (3.02)***

0.04 (0.55)

0.16 (2.59)***

0.18 (1.84)*

0.09 (1.62)

Type of Worker^b

In-Migrant

(2) -0.19 (1.29)

-0.34 (4.20)***

-0.11 (0.64)

-0.31 (2.56)**

-0.38 (1.49)

-0.36 (3.27)***

In-Commuter

(3) -0.09 (0.73)

-0.32 (4.13)***

-0.02 (0.11)

-0.24 (2.12)**

-0.29 (1.37)

-0.40 (3.75)***

Out-Commuter

(4) -0.19 (2.60)***

-0.29 (5.34)***

-0.12 (1.36)

-0.23 (3.08)***

-0.34 (2.38)**

-0.34 (4.46)***

Self-Employed

(5) 0.52 (3.09)***

-0.10 (0.91)

0.56 (2.80)***

0.20 (1.12)

0.55 (1.67)

-0.02 (0.15)

Education, Age and Gender

% High School Graduated

(6) 0.31 (2.14)**

0.30 (2.69)***

0.23 (1.15)

0.23 (1.39)

0.55 (2.32)**

0.41 (2.70)***

% Middle School Graduated

(7) 0.16 (2.02)**

0.22 (3.47)***

0.18 (1.72)*

0.27 (2.81)***

0.18 (1.41)

0.20 (2.48)**

% Under Age 25

(8) -0.24 (3.15)***

-0.14 (2.24)**

-0.22 (2.17)**

-0.12 (1.22)

-0.24 (1.99)**

-0.20 (2.46)**

% Over Age 50

(9) -0.24 (1.48)

-0.35 (2.53)**

-0.20 (0.97)

-0.38 (1.99)**

-0.30 (1.10)

-0.33 (1.61)

Female

(10) -0.22 (4.10)***

-0.28 (6.72)***

-

-

-

-

Employment Sectorc

Agriculture

(11) 0.44 (1.75)*

0.31 (1.74)*

0.48 (1.43)

0.22 (0.86)

0.44 (1.05)

0.48 (1.95)*

Light Industry

(12) 0.37 (2.28)**

0.02 (0.18)

0.34 (1.70)*

0.004 (0.02)

0.54 (1.78)*

0.005 (0.04)

Heavy Industry

(13) 0.39 (2.00)**

0.03 (0.22)

0.41 (1.81)*

-0.06 (0.29)

0.34 (0.82)

0.19 (0.85)

Mining

(14) 0.85 (3.93)***

0.14 (0.90)

0.89 (3.65)***

0.21 (1.03)

0.77 (1.36)

-0.11 (0.35)

Construction

(15) 0.50 (3.08)***

0.21 (1.95)**

0.50 (2.63)***

0.24 (1.45)

0.60 (1.77)*

0.24 (1.57)

Transportation

(16) 0.27 (1.41)

0.04 (0.37)

0.24 (0.85)

0.05 (0.23)

0.43 (1.29)

0.003 (0.03)

Commerce

(17) 0.43 (2.13)**

0.12 (0.86)

0.50 (2.12)**

0.30 (1.46)

0.24 (0.59)

-0.36 (1.57)

F-Stat on Provincial Dummies

13.4***

33.9***

7.0***

17.6***

7.9***

19.4***

Adj. R-Squared_____________

___________0.27

0.30

__________0.24

0.26__________

________0.33

________0.33

Absolute value of t-stats are in parenthesis, *, **, *** indicate significance at 10, 5 and 1 percent respectively.

^a Dummy variable for villages that have in-commuters or in-migrants working in village enterprises

^b Out-migrants are left out as a base

^c Services are left out as a base