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GIARI Working Paper Vol.2008-E-27

Gender-Wage Difference in Japanese Subsidiaries in China, a Statistical Analysis Using Intra-firm Personnel Data

Fengye Sun

Graduate School of Economics,
Waseda Universityity

February 2009
[376KB]

This paper examines male-female wage determination and gender wage discrimination in Japanese affiliated subsidiaries in China using intra-firm personnel data. It is found that female wages in a Japanese enterprise can be explained by the human capital model, but that gender wage gaps not explained by observed differences in productivity still exist, accounting for about 71% by the Oaxaca (1973) decomposition method. The estimated results of the wage equation indicate that female employees receive lower returns on experiences compared to their male counterparts and, similar to firms in Japan, marriage has a negative effect on female wages. But returns on tenure and education level seem to have no gender differences, considering that the proportion of female managerial staff in China is larger than most firms in Japan. It seems that Japanese firms make better use of female employees in China than they do in Japan.

Key words: Gender wage differences; Discrimination; Female employment

1. Introduction
2. Previous studies and hypothesis
3. Firm introduction and data
4. Methodology
5. Empirical results
6. Conclusions
Acknowledgement
Appendix