Opening-up, Skill Accumulation and Income Inequality in China

Abstract

Opening-up has a very complicated influence on the labor market. In one hand, it will promote the labor skill upgrading in the host country; in the other hand, it will expand the relative wage gap between the different skill groups. This paper focuses on the dynamic of opening-up and labor market interactions, offers some suggestions to achieve the dynamic balance between income distribution, skill upgrading and economic growth.