A Study of Determination in Chinese Peasant Workers’ Wage: The Role of Human Capital and Market Segmentation

Hengyou Sun

Abstract


The result of OLS estimation indicates that peasant workers’ wage will increase by about 6.1% when education increases 1 year, and the wage increase of those who experienced professional training is about 15.7% more than those who not. After controlling other variables, industry monopoly not only brings minority’s prosperity but also majority’s poverty. Both human capital effect and labor market segmentation effect are enhanced obviously by Chinese marketization process. The conclusions imply that strengthening education and training and eliminating labor market segmentation will be very important policy to improve peasant workers’ wage. This paper also finds that none of the years of parental schooling, the numbers of brothers and sisters and the types of investigated area is an ideal IV when dealing with endogenous educational issues.

Full Text: PDF DOI: 10.5430/ijba.v3n4p31

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Business Administration
ISSN 1923-4007(Print) ISSN 1923-4015(Online)

 

Copyright © Sciedu Press

To make sure that you can receive messages from us, please add the 'Sciedu.ca' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.