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"Regional differences in wage inequality across industries in China," a paper written by Associate Professor of Economics Ann Owen and Bing Yu '03, appears in the February 2008 issue of Applied Economics Letters. The paper explores the causes of very large regional differences in wage inequality in China over the period 1996 to 2001 and finds that the effect of foreign direct investment (FDI) varies across Chinese provinces.

Interestingly, Owen and Yu find that one reason that the
effect of FDI differs is that some FDI is more "export-oriented" and
that greater amounts of export-oriented FDI tends to lower wage
inequality within the province. The work in this article started as
part of Yu's senior honors thesis in economics for which she won the
Soper Research Prize.

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