Chinese Journal of Sociology ›› 2010, Vol. 30 ›› Issue (1): 109-126.

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Human Capital, Labor Market Segmentation and Income Distribution
 

 Wang Fuqin   

  1.  Dept. of Sociology, Fudan University
  • Online:2010-01-20 Published:2010-01-20
  • Supported by:

    Research funded by National Social Science Foundation Program 06BSH049 and Philosophy Social Sciences Research Fund Projects of Ministry of Education:“The Research of Urban and Rural Employment”(07JZD0023).

Abstract:

 There are two theoretical approaches based on individualism and structuralism when explaining the inequality of income distribution. The former emphasizes the human capital as the dominant factor that generates personal incomes; the latter stresses how structural factors such as social class or strata structure and labor market structure influence incomes. The author has developed a basic income distribution model that integrates the two theoretical approaches and also incorporates human capital, labor market structure and their interaction. Model testing using the data from the Chinese General Social Survey in 2003(CGSS2003) has provided strong support for the hypothesis that human capital is the decisive factor for income distribution; however, it has also indicated that the influences of the market segmenting the labor force should not be neglected. An interaction effect exists between the human capital and the labor market structure. Workers who possess more human capital may have more opportunities to get into the state sector (both monopolies and nonmonopolies), which provides its workers with more opportunities to have their human capital enhanced.