Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249462 
Year of Publication: 
2021
Series/Report no.: 
ADBI Working Paper No. 1283
Publisher: 
Asian Development Bank Institute (ADBI), Tokyo
Abstract: 
This paper studies the impact of skill formation on employment opportunities and wages. Instead of international trade theory or technological progress theory, the paper focuses on labor "skill formation" to investigate the employment discrimination and skill wage inequality in the Chinese labor market. Based on data from the 2014 China Family Panel Studies (CFPSs), the study uses cognitive ability and noncognitive ability to measure skill formation. The empirical results show that skill formation has a positive impact on employment opportunities and wages. This result exhibits robustness in tests on monopoly industries and non-monopoly industries, except that there is a certain tendency toward wage equalization in monopoly industries. We also find employment discrimination resulting from skill differences in state-owned and non-state-owned sectors. A similar trend of wage equalization exists in state-owned sectors, while a significant trend of wage differentiation exists between high and low skills in non-state-owned sectors.
Subjects: 
skill formation
employment discrimination
skill wage inequality
JEL: 
J21
J24
J71
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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