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Identity-based Earning Discrimination among Chinese People

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Map 1

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.
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.

Figure 1

Distribution of propensity scores and common support.
Distribution of propensity scores and common support.

Figure 2

Plots of standardized bias reduction after matching.
Plots of standardized bias reduction after matching.

Figure 3

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

Figure 4

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

Estimation of propensity score (logit model)

Specification 1Specification 2Specification 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)
BMI1.062*** (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 ability0.153*** (0.015)0.152*** (0.015)0.153*** (0.016)
Ambitions
Confidence about future0.086*** (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 children0.343*** (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 neighbor0.077*** (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 works0.119*** (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 status0.109*** (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 government0.116* (0.063)0.090 (0.064)0.077 (0.067)
Unfair treatment due to inequality of personal wealth0.241*** (0.061)0.230*** (0.061)0.237*** (0.065)
Social status in the local area0.110*** (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 siblings0.218*** (0.042)
Relative income0.033 (0.023)
Currently attending school0.403*** (0.136)
Constant1.667*** (0.212)1.030*** (0.217)1.082*** (0.231)
Pseudo R20.3520.3590.374
Number of observations27,21227,21224,890

Wage and capital earnings by hukou inheritors

VariablesMean differenceAgricultural hukou= 1Nonagricultural hukou= 0
MeanSt. Dev.Min/MaxMeanSt. Dev.Min/Max
Wage6,251.35*7,327.0715,873.770/442,00013,578.4225,530.210/408,400
Wage excluding zero earners8,635.96*24,322.8120,569.241/44,200032,958.7730,714.978/408,400
Income6,914.38*7,489.4715,930.620/442,00014,403.8525,354.240/408,400
Income excluding zero earners4,918.77*15,563.4120,043.151/442,00020,482.1728,100.461/408,400

Impact of hukou status on earnings: matching estimates

Dependent variableModel 5.1Model 5.2Model 5.3Model 5.4Model 5.5Model 5.6
Specifications 1 and 2Specification 3Specification 3
NNM 1NNM 3NNM 1NNM 3Calip 0.01Calip 0.05
-3,814.18***-3,561.34***-4,062.46***-4,285.88***-4,062.46***-4,062.46***
WageATE(357.02)(330.72)(420.31)(362.24)(420.31)(420.31)
Observation27,21227,21224,89024,89024,89024,890
-4,606.76***-4,348.29***-4,743.90***-4,703.81***-4,743.90***-4,743.89***
IncomeATE(396.00)(337.49)(449.87)(379.67)(449.87)(449.87)
Observation27,19627,19624,87524,87524,87524,875
Balancing property satisfiedYesYesYesYesYesYes
Common support imposedYesYesYesYesYesYes
Treatment modelLogitLogitLogitLogitLogitLogit

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

Model 7.1Model 7.2Model 7.3Model 7.4Model 7.5Model 7.6Model 7.7Model 7.8
Work ownershipType of work
Self-employedEmployed by othersAgriculturalNonagricultural
NNM 1Caliper 0.05NNM 1Caliper 0.05NNM 1Caliper 0.1NNM 1Caliper 0.05
Wage (ATE)560.82560.82-1796.77**-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)
Observation11,91211,9128,4218,4219,8849,88410,48110,481
Income (ATE)302.51302.51-2056.72***-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.11,90611,9068,4158,4159,8799,87910,47410,474
Balancing property satisfiedYesYesYesYesYesYesYesYes
Common support imposedYesYesYesYesYesYesYesYes
Treatment modelLogitLogitLogitLogitLogitLogitLogitLogit

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

Model 8.1Model 8.2Model 8.3Model 8.4Model 8.5Model 8.6Model 8.7Model 8.8
Types of employerSign labor contract
PublicPrivateYes/No (applicable)Not applicable
NNM 1Caliper 0.05NNM 1Caliper 0.05NNM 1Calip 0.05NNM 1Caliper 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)
Observation2,3312,3316,0996,0998,4238,42316,46016,460
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)
Observation2,3302,3306,0946,0948,4178,41716,45116,451
Balancing property satisfiedYesYesYesYesYesYesYesYes
Common support imposedYesYesYesYesYesYesYesYes
Treatment modelLogitLogitLogitLogitLogitLogitLogitLogit

Characteristics of agricultural and nonagricultural hukou: summary statistics

VariablesMean-differenceAgricultural hukou = 1Nonagricultural hukou = 0
MeanSt.Dev.Min/MaxMeanSt.Dev.Min/Max
Demographic characteristics
Gender (1 = male, 0 = otherwise)0.010.500.4990/10.500.500/1
Age (years)3.07*44.7617.3916/10447.8317.4216/96
BMI-0.05*1.390.220.67/3.21.340.220.71/3.34
Self-rated health status (1 to 5, 1 = excellent, 5 = poor)0.05*2.941.291/52.991.151/5
Ability
Education (years of schooling)3.51*6.54.460/1910.014.570/22
Nondegree training (no. of times)0.21*0.100.740/500.321.530/48
Math test score (math ability)3.33*6.925.710/2410.256.580/24
Word test score (language ability)6.46*14.9211.350/3421.3810.450/34
Memory test (1 to 5, 1 = better, 5 = worse)-0.46*2.691.311/52.241.171/5
Currently attending school (yes = 1, no = 0)-1.520.070.260/10.070.260/1
Migration status
Migrant (migrant = 1, nonmigrant = 0)0.281*0.100.300/10.380.490/1
Ambitions
Future confidence (0 to 5, 0 = low, 5 = high)-0.06*4.051.031/53.990.981/5
Networking/relation (0 to 10, 0 = low, 10 = high)0.037.241.851/107.271.721/10
Attitude
Ideal number of children-0.21*2.070.801/101.870.681/10
People are helpful/selfish (helpful = 1, selfish = 0)0.000.680.470/10.680.470/1
People are trustworthy (yes = 1, otherwise = 0)0.040.520.500/10.570.500/1
Trust your neighbor (0 to 10, 0 = distrustful, 10 = very trustworthy)-0.296.712.200/106.422.090/10
Family background
Marital status (married = 1, otherwise = 0)-0.01*0.240.430/10.230.420/1
Time spent on household works (h)-0.44*2.142.010/241.711.660/21
Time spent on watching TV (h)2.39*10.929.740/15413.3111.490/112
Family’s social status (1 to 5, 1 = very low, 5 = very high)-0.14*3.160.971/53.030.871/5
Work and employment
Currently employment (yes = 1, no = 0)-0.20*0.790.400/10.590.490/1
Whether retired or not (yes = 1, no = 0)0.23*0.010.090/10.250.430/1
Occupation
Sector of works (agriculture = 1, otherwise = 0)-0.45*0.540.50/10.090.290/1
Other socioeconomic background
Whether CCP member (yes = 1, otherwise = 0)0.10*0.0370.190/10.130.340/1
Faced unfair treatment by government (yes = 1, otherwise = 0)-0.03*0.120.320/10.080.280/1
Faced unfair treatment due to inequality of personal wealth (yes = 1, otherwise = 0)-0.04*0.130.340/10.090.280/1
Social status in the local area (1 to 5, 1 = very low, 5 = very high)-0.14*2.961.021/52.820.931/5
Number of deceased siblings-0.010.20.580/70.190.590/10
Relative income in the local area-0.04*2.531.021/52.490.941/5

Impact of Hukou status on wages: OLS estimates

Model 3.1Model 3.2Model 3.3Model 3.4Model 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 schooling465.632*** (31.503)469.460*** (32.128)432.130*** (32.155)425.256*** (32.015)
Nondegree training2,265.070*** (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 school18,651.163** (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 networking262.077*** (55.514)238.595*** (56.684)233.468*** (56.682)
Attitude
The ideal number of children111.526 (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 neighbour22.048 (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 status38.701 (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 area303.015*** (117.461)330.761*** (117.131)
Retirement (Yes = 1)–8,929.176*** (421.436)–9,039.505*** (420.279)
Migration status
Hukou*migration1,861.831** (746.307)
Migrant1,528.756*** (572.376)
Province dummyYesYesYesYesYes
Religion dummyYesYesYesYesYes
Constant22,888.94***
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 R20.150.210.210.230.23
Number of observations30,62228,93628,48127,21127,206

Impact of hukou status on income: OLS estimates

Model 4.1Model 4.2Model 4.3Model 4.4Model 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 schooling476.476*** (31.406)479.601*** (32.034)423.711*** (31.731)416.443*** (31.583)
Nondegree training2,227.160*** (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 school18,230.432** (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 networking266.600*** (55.340)222.314*** (56.081)215.905*** (56.059)
Attitude
The ideal number of children90.663 (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 neighbor23.572 (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 status59.314 (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 area195.777* (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*migration2,457.494*** (736.343)
Migrant1,400.082** (563.753)
Province dummyYesYesYesYesYes
Religion dummyYesYesYesYesYes
Constant23,747.39*** (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 R20.150.210.210.240.24
Number of observations30,59728,92028,46527,19527,190

Cross-tabulation of groups samples by hukou registration types

CategoriesPosition/sectorNonagricultural hukouAgricultural hukouTotal
Work ownershipSelf-employed1,31112,87814,189
Employed by others4,4337,79912,232
Work typesAgricultural54011,20711,747
Nonagricultural5,2189,50714,725
Employer typesGovernment1,9601,0152,975
Private1,8765,1917,067
Labor contractApplicable4,2266,33110,557
conditionsNot applicable4,72716,93421,661