Do Occupational Regulations Increase Earnings? Evidence from China

Wei Chi; Morris M Kleiner; Xiaoye Qian

doi:10.1111/irel.12176

Do Occupational Regulations Increase Earnings? Evidence from China

Wei Chi, Morris M Kleiner, Xiaoye Qian

Social Policy & Policy Analysis

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Abstract

We examine the influence of occupational certification and licensing in China. In the empirical analysis, we find that licensing is associated with an average of 15 percent higher wages and certification with a 13–14 percent higher wage based on ordinary least squares estimates. However, using propensity score and instrumental variable estimates suggests that part of the positive effect of certification on wages is due to self-selection. In addition, the characteristics of a certificate or license, such as the type and quantity, further influence wage determination in China.

Original language	English (US)
Pages (from-to)	351-381
Number of pages	31
Journal	Industrial Relations
Volume	56
Issue number	2
DOIs	https://doi.org/10.1111/irel.12176
State	Published - Apr 1 2017

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© 2017 Regents of the University of California

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Do Occupational Regulations Increase Earnings? Evidence from China

Abstract

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