The Contribution of Work Experience on Earnings Inequality of Migrant Workers: Decompositions Based on the Quantile Regression Equation

Abstract

This paper aims at excavating the influence factors of the earning inequality, due to the increasing contribution of earing inequality to income inequality in rural region. The authors examine the contribution of work experience on the earning inequality using a survey data. Employed the quantile regression, they estimate the Mincer equation of migrant workers' earnings, and decompose earning inequality by the regression-based decomposition. It has been found that the effects of work experience had been one of most important contributors to earnings inequality, and its contribution is close to 20%. Furthermore, the authors use the same method to examine the effects for male migrant workers, the results show that work experience had a steady contribution to earing inequality.