Does Feminization Always Lead to Declines in Earnings? Evidence from China’s Marketization (1988 to 2013)

Abstract

ABSTRACT One explanation of increasing gender earnings inequality during China’s marketization is the increasing representation of women in industries and occupations in which, on average, earnings are declining. I argue that focusing on the average relationship between feminization and earnings is insufficient to understand complex changes in gender inequality during this period. I hypothesize that the feminization-earnings relationship may vary by industry because of differences in devaluation, social closure, and earnings-setting mechanisms. The hypotheses are tested using data from the China Household Income Project (1988– 2013) in industry-province level fixed-effects models. Results support the hypotheses that focus on industry-specific contexts. Specifically, feminization is not negatively associated with earnings in state-monopolized industries, where earnings are protected, and finance-insurance industries, where high-skilled female-typed skills have been increasingly in demand. I discuss implications for understanding segregation amongst the highly educated.