Has Internet Usage Really Narrowed the Gender Wage Gap?: Evidence from Chinese General Social Survey Data

Abstract

Based on the data from a sample of 4832 from the Chinese General Social Survey in 2018, this study examines the impact of Internet usage on the wage equation for males and females by using the robust least squares regression method, the threshold regression method, and the quantile regression method and decomposes the gender wage gap on this basis by using the RIF regression decomposition method. The findings show that, firstly, in either linear or nonlinear effects, Internet usage has a significant wage premium effect on the male wage equation, and this premium effect increases as male wage income rises, but Internet usage consistently does not have a significant effect on the female wage equation. Secondly, 26.73% of the overall gender wage gap is due to Internet usage, and the presence of gender discrimination in the cyberspace is a significant contributor to this result. Thirdly, Internet usage causes the gender wage gaps at different wage levels to be further widened to different degrees. Specifically, Internet usage has the strongest effect on the gender wage gap at lower wage levels, the second strongest effect on the gender wage gap at higher wage levels, and the weakest effect on the gender wage gap at middle wage levels. The different levels of gender discrimination experienced by females in the cyberspace are an important cause of the differential widening effect of Internet usage on gender wage gaps at different wage levels. Therefore, this study proposes policy recommendations in terms of regulating gender discrimination and introducing relevant female protection policies.