Abstract
Using CHIP and RUMCI data for 1995, 2002, 2007 and 2008, this article estimates the extent of low pay among local and rural-migrant workers in urban China. Based on a threshold of two-thirds of median hourly wages, it finds that a high overall proportion of urban employees are low-paid. While incidence remained relatively stable among locals between 1995 and 2008, it declined for migrants from 2002 to 2007, though the latter were still much more likely to be in low-paid jobs. After investigating the determinants and welfare implications of low pay, the authors conclude with an argument for subsidized training, stricter minimum wage enforcement and firm-level wage bargaining.