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Shaefer and Edin's book ($2 a Day) cited in piece on political debate over plight of impoverished Americans

Eisenberg tracks factors affecting both mental health and athletic/academic performance among college athletes

Shapiro says Americans' low spending reflects "cruel lesson" about the dangers of debt

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Susan Murphy elected to the National Academy of Sciences

Maggie Levenstein named director of ISR's Inter-university Consortium for Political and Social Research

Arline Geronimus receives 2016 Harold R. Johnson Diversity Service Award

PSC spring 2016 newsletter: Kristin Seefeldt, Brady West, newly funded projects, ISR Runs for Bob, and more

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Xiaogang Wu photo

Work Units and Income Inequality: The Effect of Market Transition in Urban China

Publication Abstract

Wu, Xiaogang. 2002. "Work Units and Income Inequality: The Effect of Market Transition in Urban China." Social Forces, 80(3): 1069-1099.

This article analyzes the effect of marketization on personal income inequality in urban China as mediated by three types of work units: low-profit state firms (LPFs), high-profit state firms (HPFs), and market firms (MFs). Results based on two urban survey data sets show that while the influence of redistributive power declines, returns to human capital do not monotonically increase as a firm's proximity to the market increases. Although returns to human capital are higher in the market sector than in the state sector, the effects of education on earnings are weaker in HPFs than LPFs within the state sector. The inconsistency is attributed to the effects of bonuses that are equally distributed among employees in HPFs.

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