Are migrants discriminated against in Chinese urban labour markets?

Gagnon, Jason; Xenogiani, Theodora; Xing, Chunbing

doi:10.1186/2193-9020-3-17

IZA Journal of Labor & Development

Table 4 Oaxaca-Blinder decomposition of the gap in the average probability of having an informal sector job

From: Are migrants discriminated against in Chinese urban labour markets?

	Self-employed and			Self-employed			Without a contract
	without a contract
A: W=1	coef.	s.e.	%	coef.	s.e.	%	coef.	s.e.	%
Rural migrants vs.
urban residents
Difference	0.337	0.002		0.087	0.001		0.250	0.002
Explained	0.059	0.001	17	0.035	0.001	41	0.023	0.001	9
Unexplained	0.279	0.002	83	0.051	0.001	59	0.227	0.002	91
Urban migrants vs.
urban residents
Difference	0.166	0.003		0.057	0.002		0.109	0.003
Explained	0.028	0.001	17	-0.005	0.001	-9	0.034	0.001	31
Unexplained	0.138	0.003	83	0.062	0.002	109	0.075	0.003	69
Urban migrants vs.
rural migrants
Difference	-0.171	0.004		-0.030	0.002		-0.141	0.003
Explained	-0.087	0.003	51	-0.006	0.003	20	-0.081	0.003	57
Unexplained	-0.085	0.005	49	-0.024	0.003	80	-0.061	0.005	43
Non-recent migrants
Difference	-0.191	0.006		-0.072	0.005		-0.119	0.006
Explained	-0.100	0.006	52	-0.048	0.005	66	-0.052	0.006	44
Unexplained	-0.092	0.008	48	-0.024	0.007	34	-0.067	0.008	56
Recent migrants
Difference	-0.162	0.004		-0.015	0.003		-0.147	0.004
Explained	-0.079	0.004	49	0.007	0.003	-46	-0.086	0.004	59
Unexplained	-0.082	0.006	51	-0.022	0.004	146	-0.060	0.006	41
B: W=0	coef.	s.e.	%	coef.	s.e.	%	coef.	s.e.	%
Rural migrants vs.
urban residents
Difference	0.337	0.002		0.087	0.001		0.250	0.002
Explained	0.047	0.004	14	-0.093	0.003	-107	0.140	0.004	56
Unexplained	0.291	0.004	86	0.180	0.003	207	0.111	0.004	44
Urban migrants vs.
urban residents
Difference	0.166	0.003		0.057	0.002		0.109	0.003
Explained	-0.034	0.004	-21	-0.067	0.002	-117	0.033	0.003	30
Unexplained	0.200	0.005	121	0.124	0.003	217	0.076	0.004	70
Urban migrants vs.
rural migrants
Difference	-0.171	0.004		-0.030	0.002		-0.141	0.003
Explained	-0.098	0.004	57	-0.028	0.003	94	-0.070	0.004	50
Unexplained	-0.073	0.005	43	-0.002	0.003	6	-0.071	0.005	50
Non-recent migrants
Difference	-0.191	0.006		-0.072	0.005		-0.119	0.006
Explained	-0.086	0.007	45	-0.048	0.005	67	-0.038	0.006	32
Unexplained	-0.105	0.009	55	-0.024	0.007	33	-0.081	0.008	68
Recent migrants
Difference	-0.162	0.004		-0.015	0.003		-0.147	0.004
Explained	-0.105	0.005	65	-0.021	0.003	138	-0.085	0.005	58
Unexplained	-0.056	0.006	35	0.006	0.004	-38	-0.062	0.006	42

The decomposition results are based on a linear probability model.
The sample includes individuals aged 16–60 years and who are out of school.
Observations with no or zero income declared were dropped.
Results in panel A (W =1) are calculated based on the counterfactual ${\bar{X}}^{m} {\hat{β}}^{u}$ , and those in panel B (W =0) based on ${\bar{X}}^{u} {\hat{β}}^{m}$ .
Source: 1% population survey of China (2005).

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