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Thompson says America must "unchoose" policies that have led to mass incarceration

Axinn says new data on campus rape will "allow students to see for themselves the full extent of this problem"

Frey says white population is growing in Detroit and other large cities


Susan Murphy to speak at U-M kickoff for data science initiative, Oct 6, Rackham

Andrew Goodman-Bacon, former trainee, wins 2015 Nevins Prize for best dissertation in economic history

Deirdre Bloome wins ASA award for work on racial inequality and intergenerational transmission

Bob Willis awarded 2015 Jacob Mincer Award for Lifetime Contributions to the Field of Labor Economics

Next Brown Bag

Monday, Oct 5 at noon, 6050 ISR
Colter Mitchell: Biological consequences of poverty

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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