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Title: AN ANALYSIS OF THE INCOME GAP BETWEEN INSIDE AND OUTSIDE CHINA'S SYSTEM: BASED ON CFPS PANEL DATA
Authors: Ma Yiming
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Ma Yiming School of economics and management, Nanjing University of Aeronautics and Astronautics, Jiangsu 211106, China
MLA 8 Yiming, Ma. "AN ANALYSIS OF THE INCOME GAP BETWEEN INSIDE AND OUTSIDE CHINA'S SYSTEM: BASED ON CFPS PANEL DATA." Int. j. of Social Science and Economic Research, vol. 5, no. 3, Mar. 2020, pp. 660-672, ijsser.org/more2020.php?id=44. Accessed Mar. 2020. APA Yiming, M. (2020, March). AN ANALYSIS OF THE INCOME GAP BETWEEN INSIDE AND OUTSIDE CHINA'S SYSTEM: BASED ON CFPS PANEL DATA. Int. j. of Social Science and Economic Research, 5(3), 660-672. Retrieved from ijsser.org/more2020.php?id=44 Chicago Yiming, Ma. "AN ANALYSIS OF THE INCOME GAP BETWEEN INSIDE AND OUTSIDE CHINA'S SYSTEM: BASED ON CFPS PANEL DATA." Int. j. of Social Science and Economic Research 5, no. 3 (March 2020), 660-672. Accessed March, 2020. ijsser.org/more2020.php?id=44.
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Abstract: The purpose of this paper is to assess the income gap between within and outside the system. To overcome the problem of self-selection of the sample, this paper focuses on the group that entered the system from outside between 2010 and 2012, using a combination of propensity score matching method and the double difference method to construct the counterfactual. In 2010 and 2012 CFPS data base, we control the observable factors as much as possible, while eliminating the influence of the variables which do not change or change evenly over time using the double difference method, in order to obtain the pure impact on revenue of entering the system as precisely as possible. The results showed that, entering the system can increase the average individual income by 17.35 percent. Further classifying discussion showed that coming into the state-owned enterprises make revenue increased by 34.95 percent, and into the party and government organs, institutions will make the income increased by 6.70 percent.

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