Home Solutions You are asked to work on a project on wage inequality and the determinants of wage rates in city X in Y province in China.
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T13301 Advanced Quantitative Methods and IT Skills for Business
Data: Download the datasets wage.xls from “Coursework” folder on Moodle.
Word Limit: 2000 words (excluding tables, figures, footnotes and references).
The Task: You are asked to work on a project on wage inequality and the determinants of wage rates in city X in Y province in China.
You have been provided with the data from a survey of 359 employees in this city from three sectors, manufacturing, construction and other. The dataset provides information of 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) Given the complex data set, explain how you will proceed in order to provide evidence on wage inequality. (15%)
(2) Provide the evidence of wage inequality you have found and comment on the evidence. (30%)
(3) Explain how you will investigate determinants of wage rates of city X in province Y in China. (15%)
(4) Present the determinants of the wage rates and interpret your results. (30%)
(5) Draw sensible conclusions and provide policy suggestions to the local government. (10%)
You should use MS-Excel or a similar package to carry out statistical and graphical data analysis.
List of Variables:
ID: identifier for the employee
WAGE: monthly wage (1000 RMB)
EDUCATION: number of years of education
SEX: indicator variable for sex, (1=Female, 0=Male)
EXPERIENCE: number of years of working experience
AGE: age of the employee (years)
PARTY MEMBER: indicator variable for Communist Party Member status (1= Party member, 0=not Party member)/
SECTOR: sector of the employment (1=Manufacture, 2= Construction, 0= others)
MARR: Marital Status (0 = unmarried, 1=married)
OCCUPATION: occupational category (1=Management, 2=sales, 3=clerical, 4=service. 5=professional, 6=others)
HUKOU: indicator variable of Hukou (i.e. household registration) (1= local hukou, 0= hukou not in X city)
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