You are asked to work on a project for the Bureau of Human Resources and Social Security of city X in province Y in China. The project aims to analyse various issues related to employment in city X. The Bureau is particularly interested in issues related to wage inequality and the determinants of wage rates in this city.
You are asked to address the following issues:
(1) How is wage inequality defined in the literature? Given the complex data set, explain how you will proceed in order to provide evidence of wage inequality. (30%)
(2) Provide the Bureau with the evidence of wage inequality you have found and interpret your results. (50%)
(3) Draw sensible conclusions based on your findings and provide suggestions to the Bureau. (20%)