The Relationship between Age and Growth Rate of Wages and the Gender Wage Gap in the Financial Sector in China

Abstract

Using CGSS data, this paper explores the relationship between age and wage growth rates in China’s financial sector by developing a fixed effects model. I find that the wage growth rate declines slowly with age, although the absolute value of wages has been rising. After a brief comparison of the financial sector, the information technology sector, and agriculture, I find that the pattern of their wage growth rates is similar, i.e., the wage growth rate declines slowly with age. Then, through empirical tests, I find that a gender wage gap does exist in the finance industry and that the gender wage gap gradually increases with age. Based on this, I further investigate the relationship between the age of female workers and the wage growth rate, and the possible reasons why the wages of female workers are lower than those of male workers. I find that the wage growth rate of female workers also gradually decreases as their age increases. Moreover, having children has a significant negative effect on the wage growth rate, but the marital status does not.