ABSTRACT
This chapter presents an analysis of the labor market outcomes of ethnic minorities in urban China in terms of occupational distribution and earnings. Using data from the China Household Ethnic Survey 2011, it focuses on eight important ethnic groups in urban China that are compared to the Han majority. The analysis of employment gaps shows that this is more a women issue than a men issue whereas earnings gaps appear to be more of an issue for men. Various estimations show substantial heterogeneity in labor market participation across ethnic groups, in particular for women. Even after controlling for individual characteristics, household composition and location, Hui and Uighur women have particularly low employment probabilities compared to their Han counterparts, which contrasts with Kazak women who exhibit significantly higher employment probabilities. Findings from the estimation of earnings equations further indicate that the inter-ethnic earnings gap is unfavorable for some ethnic groups when they are in a locally dominant position. Finally, a decomposition exercise suggests that holding individual characteristics constant, some unexplained differences persists for Tujia and Uighur men.
