Posted: January 8th, 2016
You are asked to work on a project for the Bureau of Human Resources and Social Security of city X in province Y in China. The project aims to analyse various issues related to employment in city X. The Bureau is particularly interested in issues related to wage inequality and the determinants of wage rates in this city.
You have been provided with the data from a survey of 359 employees in city X from three sectors, manufacturing, construction and other. The dataset provides information on the following characteristics: monthly wage rates, age, education, sex, occupation, Party member status, working experience, marital status, hukou, etc.
You are asked to address the following issues:
(1) How is wage inequality defined in the literature? Given the complex data set, explain how you will proceed in order to provide evidence of wage inequality. (30%)
(2) Provide the Bureau with the evidence of wage inequality you have found and interpret your results. (50%)
(3) Draw sensible conclusions based on your findings and provide suggestions to the Bureau. (20%)
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