Wage Differentials between State-owned Sectors and Non-state-owned Sectors : Evidence from China

Based on China Household Income Project 2013 data, the influencing factors of wage differentials between SOSs and NSOSs in China are studied by using Probit regression, Heckman’s two-step method, and the Oaxaca–Blinder decomposition method. The conclusions are as follows: Workers' educational level and working experience, the salary system of sectors, industry monopoly, and labour market segmentation have a significant impact on wage differentials. Workers entering SOSs and NSOSs are non-random, and workers with higher education and more experience prefer to choose SOSs, while women prefer to choose NSOSs, party members are more inclined to choose SOSs than are non-party members, and, compared with the Eastern region, workers in Central and Western regions prefer SOSs. The wage gap between SOSs and NSOSs was divided into an interpretable part and an uninterpretable part. About 23.95% of the wage gap is uninterpretable