Technological upgrading and decent work in the manufacturing sector: evidence from seven coastline provinces, China, 2002-2014

This research examines the relationship between technological upgrading and decent work in the manufacturing sector in China. By analyzing data from seven selected coastline provinces (Jiangsu, Guangdong, Zhejiang, Shandong, Fujian, Guangxi, and Hainan), both technological upgrading and an increase in decent work have been observed between 2002 and 2014. Decent work, however, is not distributed evenly among Chinese citizens. The average wage is identified as a key decent work indicator, and selected as the dependent variable in the econometric regression model. The impact of technological upgrading on the average nominal wage is estimated by a time-series-cross-section regression model using provincial level data from 2003-2014. Regression results indicate that technological upgrading accelerates wage growth in the manufacturing sector. My suggestions for future government development strategies are, to firstly, revise the Hukou system to promote equal opportunities for all citizens, and secondly, offer preferential policies to attract more FDI and encourage domestic R&D... .