Wage Inequality in X City of Y Province in China - Essay Example

?Case Study Analysis: Wage Inequality in X of Y Province in China Background We were asked to work on a project for the Bureau of Human Resources and Social Security of X city in Y province in China. The project aimed to analyze various aspects of employment in X city. The Bureau was particularly interested in issues related to wage inequality and the determinants of wage rates in this city. We were provided the data from a survey of 359 employees in X 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. 1. Tests of Hypothesis for Statistical Significance, such as ANOVA (Analysis of Variance), will be done to prove inequalities or significant differences in wages between groups in question. Normally, it is contended that variance between the groups will not differ and if at all it does, it is assumed to have happened by chance. But if the p value (probability value) of such a difference in variance is less than 0.5, it means a significant difference of variance is present between groups (based on occupations 6, 1, 2, 3, 4, and 5). Hence, it can be concluded that there is a difference in the mean value of wages in two or more groups. Data can be analyzed for statistical significance based on the normal distribution. This means that if the computed probability value, or p value, as measured from t test or Anova is Read More