This paper analyzes changes in the gender earnings gap in urban China over the period 1988-2004 using urban household survey data. The mean female/male earnings ratio declined from 86.3% to 76.2%. Mainly responsible for this diverging trend were rapid increases in returns to both observed and unobserved skills, which accentuated
This paper argues that the relevant test of wage screening effects should be based on educational certificates rather than years of schooling. This is because information conveyed to firms about individual productivity through years of schooling is not sufficiently refined for making individual wage offer decisions. Although it may be useful for making hiring decisions.
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