Rising Gender Wage Disparities in China: Labor Market Transformation and Unequal Returns

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Abstract

Since the late 1970s, China has undergone significant social and economic transformations, yet progress toward gender equality in the labor market has stalled. This study investigates the driving forces behind this trend, integrating structural and returns-based perspectives. Using nationally representative data from the China General Social Survey (CGSS) for 2003, 2010, and 2018, we apply Kim’s (2010) decomposition method to analyze gender wage disparities in urban China across two distinct economic phases: rapid economic growth (2000s) and high-quality development (2010s).
Our findings highlight that while women have surpassed men in higher education attainment, their wage returns remain unequal, with increasing polarization among different educational levels. Sectoral employment trends have decreasing explanatory power in gender wage disparities, while inequalities in other labor market characteristics are playing an increasing role. Overall, our study highlights the importance of considering the evolving gendered effects of labor market transformations beyond traditional market transition frameworks.

Authors

• Zhantao Liang

• Andi Wang, Renmin University of China