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Please use this identifier to cite or link to this item: http://hdl.handle.net/1783.1/6183
Title: Danwei profitability and earnings inequality in urban China
Authors: Xie, Yu
Wu, Xiaogang
Keywords: Danwei
Profitability
Earning
Issue Date: Sep-2008
Citation: China quarterly, v. 195, Sep 2008, p. 558-581
Abstract: Prior research has debated the relative importance of such factors as human capital, political capital and region in determining workers’ earnings in reform-era urban China. This article argues that a main agent of social stratification in contemporary China continues to be the danwei, the work unit. Using data from a 1999 survey we conducted in three large Chinese cities, Wuhan, Shanghai and Xi’an, we assess the extent to which workers’ earnings (including regular wages, bonuses and subsidies) depend on the profitability of their danwei. Results show that the financial situation of the danwei is one of the most important determinants of earnings in today’s urban China. Furthermore, the importance of danwei profitability does not vary by city or by employment sector.
Rights: © Cambridge University Press 2008. This paper was published in the China Quarterly and is reprinted with permission.
URI: http://hdl.handle.net/1783.1/6183
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