Identity-based Earning Discrimination among Chinese People

Abu Bakkar Siddique

doi:10.2478/izajodm-2020-0005

Figures & Tables

Sample distributions. Notes: The author created this map using ArcMap 6.10 software. China’s provincial shapefile was collected from ArcGIS online and sample data from CFPS 2014. CFPS, China Family Panel Studies.

Distribution of propensity scores and common support.

Plots of standardized bias reduction after matching.

Density of the propensity scores before and after matching for all samples.

Density of the propensity scores before and after matching with disaggregation.

Estimation of propensity score (logit model)

	Specification 1	Specification 2	Specification 3

	Hukou (agricultural = 1)	Hukou (agricultural = 1)	Hukou (agricultural = 1)
Migration status
Migrant (yes = 1)	-1.401*** (0.043)	-1.364*** (0.043)	-1.391*** (0.046)

Demographic characteristics
Gender (men = 1)	0.598*** (0.040)	0.493*** (0.041)	0.510*** (0.043)
Age (years)	-0.043*** (0.002)	-0.040*** (0.002)	-0.041*** (0.002)
BMI	1.062*** (0.091)	1.092*** (0.091)	1.046*** (0.097)
Self-rated health status	-0.029* (0.016)	-0.014 (0.016)	-0.018 (0.017)

Abilities
Years of schooling	-0.218*** (0.007)	-0.223*** (0.007)	-0.228*** (0.007)
Nondegree training	-0.093*** (0.028)	-0.110*** (0.031)	-0.110*** (0.033)
Language ability (test score)	-0.011*** (0.003)	-0.012*** (0.003)	-0.012*** (0.003)
Mathematical ability (test score)	-0.022*** (0.004)	-0.022*** (0.004)	-0.020*** (0.005)
Memorizing ability	0.153*** (0.015)	0.152*** (0.015)	0.153*** (0.016)

Ambitions
Confidence about future	0.086*** (0.019)	0.080*** (0.019)	0.071*** (0.020)
Networking/relation	-0.030*** (0.011)	-0.034*** (0.011)	-0.033*** (0.012)

Attitudes
The ideal number of children	0.343*** (0.032)	0.344*** (0.032)	0.341*** (0.035)
People are helpful/selfish	-0.014 (0.040)	0.002 (0.040)	-0.014 (0.043)
People are trustworthy	-0.016 (0.039)	-0.028 (0.039)	-0.032 (0.041)
Trust your neighbor	0.077*** (0.009)	0.078*** (0.009)	0.074*** (0.009)

Family background
Marriage (married = 1)	-0.091* (0.049)	-0.000 (0.049)	-0.110** (0.055)
Time spend for household works	0.119*** (0.011)	0.126*** (0.011)	0.132*** (0.012)
Time spend for watching TV	-0.011*** (0.002)	-0.009*** (0.002)	-0.010*** (0.002)
Family’s social status	0.109*** (0.025)	0.113*** (0.025)	0.129*** (0.026)

Other socioeconomic background
CCP member (yes = 1)	-0.307*** (0.064)	-0.315*** (0.065	-0.346*** (0.066)
Unfair treatment by the government	0.116* (0.063)	0.090 (0.064)	0.077 (0.067)
Unfair treatment due to inequality of personal wealth	0.241*** (0.061)	0.230*** (0.061)	0.237*** (0.065)
Social status in the local area	0.110*** (0.023)	0.095*** (0.023)	0.071*** (0.026)
Retirement (yes = 1)	-3.386*** (0.100)	-3.144*** (0.103)	-3.197*** (0.107)
Currently employed (yes = 1)		0.678*** (0.045)	0.736*** (0.051)
Hospitalization (yes = 1)			0.138** (0.064)
Number of deceased siblings			0.218*** (0.042)
Relative income			0.033 (0.023)
Currently attending school			0.403*** (0.136)
Constant	1.667*** (0.212)	1.030*** (0.217)	1.082*** (0.231)
Pseudo R²	0.352	0.359	0.374
Number of observations	27,212	27,212	24,890

Wage and capital earnings by hukou inheritors

Variables	Mean difference	Agricultural hukou₌ 1			Nonagricultural hukou₌ 0
Variables	Mean difference	Mean	St. Dev.	Min/Max	Mean	St. Dev.	Min/Max
Wage	6,251.35*	7,327.07	15,873.77	0/442,000	13,578.42	25,530.21	0/408,400
Wage excluding zero earners	8,635.96*	24,322.81	20,569.24	1/44,2000	32,958.77	30,714.97	8/408,400
Income	6,914.38*	7,489.47	15,930.62	0/442,000	14,403.85	25,354.24	0/408,400
Income excluding zero earners	4,918.77*	15,563.41	20,043.15	1/442,000	20,482.17	28,100.46	1/408,400

Impact of hukou status on earnings: matching estimates

Dependent variable		Model 5.1	Model 5.2	Model 5.3	Model 5.4	Model 5.5	Model 5.6

		Specifications 1 and 2		Specification 3		Specification 3
		NNM 1	NNM 3	NNM 1	NNM 3	Calip 0.01	Calip 0.05
		-3,814.18***	-3,561.34***	-4,062.46***	-4,285.88***	-4,062.46***	-4,062.46***
Wage	ATE	(357.02)	(330.72)	(420.31)	(362.24)	(420.31)	(420.31)
Observation		27,212	27,212	24,890	24,890	24,890	24,890
		-4,606.76***	-4,348.29***	-4,743.90***	-4,703.81***	-4,743.90***	-4,743.89***
Income	ATE	(396.00)	(337.49)	(449.87)	(379.67)	(449.87)	(449.87)
Observation		27,196	27,196	24,875	24,875	24,875	24,875
Balancing property satisfied		Yes	Yes	Yes	Yes	Yes	Yes
Common support imposed		Yes	Yes	Yes	Yes	Yes	Yes
Treatment model		Logit	Logit	Logit	Logit	Logit	Logit

Impact of hukou status on earnings across work ownership and types of works: matching estimates

	Model 7.1	Model 7.2	Model 7.3	Model 7.4	Model 7.5	Model 7.6	Model 7.7	Model 7.8

	Work ownership				Type of work
	Self-employed		Employed by others		Agricultural		Nonagricultural
	NNM 1	Caliper 0.05	NNM 1	Caliper 0.05	NNM 1	Caliper 0.1	NNM 1	Caliper 0.05
Wage (ATE)	560.82	560.82	-1796.77**	-1796.77**	-2218.81**	-2218.81**	-2924.92***	-2924.92***
	(081.24)	(581.24)	(800.94)	(800.94)	(977.53)	(977.53)	(625.92)	(625.92)
Observation	11,912	11,912	8,421	8,421	9,884	9,884	10,481	10,481
Income (ATE)	302.51	302.51	-2056.72***	-2056.72***	-2295.04	-2295.04	-2714.25***	-2714.25***
	(609.25)	(609.25)	(783.93)	(783.93)	(1653.54)	(1653.54)	(630.09)	(630.09)
Obs.	11,906	11,906	8,415	8,415	9,879	9,879	10,474	10,474
Balancing property satisfied	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Common support imposed	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Treatment model	Logit	Logit	Logit	Logit	Logit	Logit	Logit	Logit

Impact of hukou status on earnings across employer types and labor contract conditions: matching estimates

	Model 8.1	Model 8.2	Model 8.3	Model 8.4	Model 8.5	Model 8.6	Model 8.7	Model 8.8

	Types of employer				Sign labor contract
	Public		Private		Yes/No (applicable)		Not applicable
	NNM 1	Caliper 0.05	NNM 1	Caliper 0.05	NNM 1	Calip 0.05	NNM 1	Caliper 0.05
Wage (ATE)	–4351.77*** (1375.46)	–4351.77*** (1375.46)	–807.17 (817.79)	–807.17 (817.79)	–2604.17*** (810.65)	–2604.17*** (810.65)	527.86*** (161.46)	527.86*** (161.46)
Observation	2,331	2,331	6,099	6,099	8,423	8,423	16,460	16,460
Income (ATE)	–3839.77*** (1335.82)	–3839.77*** (1335.82)	–1167.61 (794.03)	–1167.61 (794.03)	–2196.11*** (777.48)	–2196.11*** (777.48)	271.6(165.13)	271.6(165.13)
Observation	2,330	2,330	6,094	6,094	8,417	8,417	16,451	16,451
Balancing property satisfied	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Common support imposed	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Treatment model	Logit	Logit	Logit	Logit	Logit	Logit	Logit	Logit

Characteristics of agricultural and nonagricultural hukou: summary statistics

Variables	Mean-difference	Agricultural hukou = 1			Nonagricultural hukou = 0
		Mean	St.Dev.	Min/Max	Mean	St.Dev.	Min/Max
		Demographic characteristics

Gender (1 = male, 0 = otherwise)	0.01	0.50	0.499	0/1	0.50	0.50	0/1
Age (years)	3.07*	44.76	17.39	16/104	47.83	17.42	16/96
BMI	-0.05*	1.39	0.22	0.67/3.2	1.34	0.22	0.71/3.34
Self-rated health status (1 to 5, 1 = excellent, 5 = poor)	0.05*	2.94	1.29	1/5	2.99	1.15	1/5

Ability
Education (years of schooling)	3.51*	6.5	4.46	0/19	10.01	4.57	0/22
Nondegree training (no. of times)	0.21*	0.10	0.74	0/50	0.32	1.53	0/48
Math test score (math ability)	3.33*	6.92	5.71	0/24	10.25	6.58	0/24
Word test score (language ability)	6.46*	14.92	11.35	0/34	21.38	10.45	0/34
Memory test (1 to 5, 1 = better, 5 = worse)	-0.46*	2.69	1.31	1/5	2.24	1.17	1/5
Currently attending school (yes = 1, no = 0)	-1.52	0.07	0.26	0/1	0.07	0.26	0/1

Migration status
Migrant (migrant = 1, nonmigrant = 0)	0.281*	0.10	0.30	0/1	0.38	0.49	0/1

Ambitions
Future confidence (0 to 5, 0 = low, 5 = high)	-0.06*	4.05	1.03	1/5	3.99	0.98	1/5
Networking/relation (0 to 10, 0 = low, 10 = high)	0.03	7.24	1.85	1/10	7.27	1.72	1/10

Attitude
Ideal number of children	-0.21*	2.07	0.80	1/10	1.87	0.68	1/10
People are helpful/selfish (helpful = 1, selfish = 0)	0.00	0.68	0.47	0/1	0.68	0.47	0/1
People are trustworthy (yes = 1, otherwise = 0)	0.04	0.52	0.50	0/1	0.57	0.50	0/1
Trust your neighbor (0 to 10, 0 = distrustful, 10 = very trustworthy)	-0.29	6.71	2.20	0/10	6.42	2.09	0/10

Family background
Marital status (married = 1, otherwise = 0)	-0.01*	0.24	0.43	0/1	0.23	0.42	0/1
Time spent on household works (h)	-0.44*	2.14	2.01	0/24	1.71	1.66	0/21
Time spent on watching TV (h)	2.39*	10.92	9.74	0/154	13.31	11.49	0/112
Family’s social status (1 to 5, 1 = very low, 5 = very high)	-0.14*	3.16	0.97	1/5	3.03	0.87	1/5

Work and employment
Currently employment (yes = 1, no = 0)	-0.20*	0.79	0.40	0/1	0.59	0.49	0/1
Whether retired or not (yes = 1, no = 0)	0.23*	0.01	0.09	0/1	0.25	0.43	0/1

Occupation
Sector of works (agriculture = 1, otherwise = 0)	-0.45*	0.54	0.5	0/1	0.09	0.29	0/1

Other socioeconomic background
Whether CCP member (yes = 1, otherwise = 0)	0.10*	0.037	0.19	0/1	0.13	0.34	0/1
Faced unfair treatment by government (yes = 1, otherwise = 0)	-0.03*	0.12	0.32	0/1	0.08	0.28	0/1
Faced unfair treatment due to inequality of personal wealth (yes = 1, otherwise = 0)	-0.04*	0.13	0.34	0/1	0.09	0.28	0/1
Social status in the local area (1 to 5, 1 = very low, 5 = very high)	-0.14*	2.96	1.02	1/5	2.82	0.93	1/5
Number of deceased siblings	-0.01	0.2	0.58	0/7	0.19	0.59	0/10
Relative income in the local area	-0.04*	2.53	1.02	1/5	2.49	0.94	1/5

Impact of Hukou status on wages: OLS estimates

	Model 3.1	Model 3.2	Model 3.3	Model 3.4	Model 3.5
Hukou status (agriculture = 1, non-agriculture = 0)
Hukou status	–5,438.114*** (269.984)	–3,185.901*** (274.530)	–3,227.510*** (279.679)	–4,761.747*** (320.599)	–4,720.358*** (370.527)

Demographic characteristics
Gender (men = 1)	6,428.181*** (206.449)	5,900.903*** (209.960)	6,010.022*** (214.962)	4,514.904*** (227.875)	4,611.116*** (228.265)
Age (years)	430.630*** (28.660)	–0.920 (34.092)	0.055 (34.619)	27.481 (40.876)	50.419 (40.998)
Age (years) squared	–7.424*** (0.292)	–2.609*** (0.319)	–2.678*** (0.326)	–2.191*** (0.383)	–2.379*** (0.384)
BMI	–913.519** (461.287)	117.785 (464.174)	155.132 (472.072)	–831.625* (472.471)	–736.267 (471.835)
Self-rated health status	–466.469*** (87.732)	–315.300*** (88.775)	–274.098*** (92.335)	–252.159*** (93.957)	–250.935*** (93.802)

Abilities
Years of schooling		465.632*** (31.503)	469.460*** (32.128)	432.130*** (32.155)	425.256*** (32.015)
Nondegree training		2,265.070*** (346.046)	2,263.622*** (351.941)	2,060.109*** (352.226)	2,053.600*** (350.637)
Language ability (test score)		–66.088*** (14.505)	–66.511*** (14.645)	–25.768* (14.559)	–29.657** (14.546)
Mathematical ability (test score)		291.339*** (34.122)	293.906*** (34.334)	255.777*** (33.790)	251.335*** (33.678)
Memorizing ability		–216.803*** (80.333)	–200.820** (81.378)	–269.374*** (82.082)	–264.113*** (82.006)
Currently attending school		18,651.163** (7,435.794)	18,432.112** (7,505.840)	17,103.573** (7,546.310)	17,552.734** (7,513.705)

Ambitions
Confidence about the future			–123.459 (90.951)	–77.527 (93.802)	–95.008 (93.734)
Interpersonal networking			262.077*** (55.514)	238.595*** (56.684)	233.468*** (56.682)

Attitude
The ideal number of children			111.526 (128.507)	–28.739 (129.044)	–10.891 (128.888)
People are helpful/selfish			–46.385 (242.597)	–85.796 (244.075)	–72.969 (244.443)
People are trustworthy			–51.898 (232.388)	–143.117 (232.768)	–141.040 (232.414)
Trust your neighbour			22.048 (52.289)	11.868 (52.992)	15.381 (53.015)

Family background
Marriage (married = 1)				1,129.312*** (350.500)	1,225.275*** (349.948)
Time spend on household works				–824.048*** (46.924)	–808.497*** (46.819)
Time spend for watching TV				–101.935*** (9.755)	–100.011*** (9.738)
Family's social status				38.701 (117.766)	64.993 (117.466)

Other socioeconomic background
CCP member (yes = 1)				1,300.839*** (490.545)	1,311.241*** (490.171)
Faced unfair treatment by the government				–301.924 (341.165)	–316.769 (341.359)
Faced unfair treatment due to
inequality of personal wealth				–238.444 (303.369)	–302.730 (302.937)
Social status in the local area				303.015*** (117.461)	330.761*** (117.131)
Retirement (Yes = 1)				–8,929.176*** (421.436)	–9,039.505*** (420.279)

Migration status
Hukou*migration					1,861.831** (746.307)
Migrant					1,528.756*** (572.376)

Province dummy	Yes	Yes	Yes	Yes	Yes
Religion dummy	Yes	Yes	Yes	Yes	Yes
Constant				22,888.94***
	21,722.64*** (2,743.592)	21 ,224.93*** (2,794.445)	19,639.16*** (2,924.843)	(3,045.005)	21,195.53*** (3,047.077)
Adjusted R²	0.15	0.21	0.21	0.23	0.23
Number of observations	30,622	28,936	28,481	27,211	27,206

Impact of hukou status on income: OLS estimates

	Model 4.1	Model 4.2	Model 4.3	Model 4.4	Model 4.5
Hukou status (agriculture = 1, non-agriculture = 0)
Hukou status	–5,958.411*** (269.550)	–3,653.200*** (274.223)	–3,694.116*** (279.392)	–5,554.602*** (319.534)	–5,640.891*** (367.701)

Demographic characteristics
Gender (men = 1)	6,405.167*** (205.890)	5,839.734*** (209.381)	5,949.340*** (214.377)	3,616.396*** (229.989)	3,711.284*** (230.173)
Age (years)	382.852*** (28.413)	–26.921 (33.849)	–26.742 (34.376)	–205.558*** (40.908)	–183.705*** (40.989)
Age (years) squared	–6.776*** (0.288)	–2.125*** (0.316)	–2.182*** (0.322)	0.694* (0.386)	0.529 (0.386)
BMI	–1,041.924** (459.608)	–52.315 (462.531)	–6.129 (470.449)	–1,053.251** (468.708)	–948.092** (467.905)
Self-rated health status	–470.691*** (87.550)	–315.736*** (88.580)	–270.613*** (92.132)	–96.887 (93.485)	–91.632 (93.323)

Abilities
Years of schooling		476.476*** (31.406)	479.601*** (32.034)	423.711*** (31.731)	416.443*** (31.583)
Nondegree training		2,227.160*** (343.694)	2,225.981*** (349.543)	1,933.577*** (344.131)	1,925.112*** (342.590)
Language ability (test score)		–58.194*** (14.460)	–58.767*** (14.600)	–17.623 (14.389)	–22.079 (14.374)
Mathematical ability (test score)		284.402*** (33.990)	287.254*** (34.202)	240.450*** (33.300)	235.525*** (33.176)
Memorizing ability		–238.198*** (80.080)	–221.034*** (81.136)	–287.082*** (81.318)	–280.665*** (81.215)
Currently attending school		18,230.432** (7,403.289)	18,031.170** (7,475.821)	16,648.559** (7,430.966)	17,080.562** (7,393.865)

Ambitions
Confidence about the future			–100.613 (90.650)	–127.343 (93.011)	–147.581 (92.909)
Interpersonal networking			266.600*** (55.340)	222.314*** (56.081)	215.905*** (56.059)

Attitude
The ideal number of children			90.663 (127.982)	–70.074 (128.085)	–49.033 (127.899)
People are helpful/selfish			–59.193 (242.143)	15.385 (241.684)	30.712 (242.024)
People are trustworthy			–70.856 (231.839)	–237.843 (230.746)	–233.819 (230.349)
Trust your neighbor			23.572 (52.140)	18.075 (52.532)	22.091 (52.542)

Family background
Marriage (married = 1)				1,255.044*** (347.279)	1,361.699*** (346.628)
Time spend on household works				–767.354*** (46.194)	–749.054*** (46.081)
Time spend for watching TV				–82.188*** (9.648)	–79.758*** (9.630)
Family's social status				59.314 (116.302)	89.635 (115.969)

Other socioeconomic background
CCP member (yes = 1)				1,191.020** (485.494)	1,199.951** (485.026)
Unfair treatment by the government				–453.871 (338.964)	–471.574 (339.152)
Unfair treatment due to inequality of personal wealth				–303.329 (302.872)	–376.583 (302.351)
Social status in the local area				195.777* (115.985)	226.894** (115.623)
Currently employed (yes= 1)				6,504.845*** (218.820)	6,615.103*** (218.986)
Retirement (yes = 1)				–5,143.453*** (407.785)	–5,230.073*** (406.947)

Migration status
Hukou*migration					2,457.494*** (736.343)
Migrant					1,400.082** (563.753)

Province dummy	Yes	Yes	Yes	Yes	Yes
Religion dummy	Yes	Yes	Yes	Yes	Yes
Constant	23,747.39*** (2,721.452)	22,502.46*** (2,773.622)	20,790.11*** (2,904.484)	23,285.62*** (3,013.113)	21,465.60*** (3,015.384)
Adjusted R²	0.15	0.21	0.21	0.24	0.24
Number of observations	30,597	28,920	28,465	27,195	27,190

Cross-tabulation of groups samples by hukou registration types

Categories	Position/sector	Nonagricultural hukou	Agricultural hukou	Total
Work ownership	Self-employed	1,311	12,878	14,189
	Employed by others	4,433	7,799	12,232
Work types	Agricultural	540	11,207	11,747
	Nonagricultural	5,218	9,507	14,725
Employer types	Government	1,960	1,015	2,975
	Private	1,876	5,191	7,067
Labor contract	Applicable	4,226	6,331	10,557
conditions	Not applicable	4,727	16,934	21,661

Identity-based Earning Discrimination among Chinese People

Figures & Tables

Map 1

Figure 1

Figure 2

Figure 3

Figure 4

Estimation of propensity score (logit model)

Wage and capital earnings by hukou inheritors

Impact of hukou status on earnings: matching estimates

Impact of hukou status on earnings across work ownership and types of works: matching estimates

Impact of hukou status on earnings across employer types and labor contract conditions: matching estimates

Characteristics of agricultural and nonagricultural hukou: summary statistics

Impact of Hukou status on wages: OLS estimates

Impact of hukou status on income: OLS estimates

Cross-tabulation of groups samples by hukou registration types

Paradigm

My account