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Wage Differentials and Employment Choice of Chinese Rural-Migrant and Urban-Resident Workers

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  • Yuling Cui
  • Daehoon Nahm
  • Massimiliano Tani

Abstract

type="main" xml:lang="en"> This article investigates the determinants of the wage rates and the drivers of the decision to be self-employed for two distinctive groups in the Chinese economy: rural-migrant and urban-resident workers. Employing the endogenous switching model, it addresses the issues of selectivity and the endogeneity of wage differentials. Results show that the factors that determine wages and the decision to enter self-employment are significantly different between the migrant self-employed, migrant paid-worker, urbanite self-employed and urbanite paid-worker groups. Evidence indicates that a large proportion of workers are not in the type of job in which they could earn the best wage.

Suggested Citation

  • Yuling Cui & Daehoon Nahm & Massimiliano Tani, 2015. "Wage Differentials and Employment Choice of Chinese Rural-Migrant and Urban-Resident Workers," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 48(4), pages 382-399, December.
    • Handle: RePEc:bla:ausecr:v:48:y:2015:i:4:p:382-399
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    Cited by:

    1. Cheng, Zhiming & Smyth, Russell, 2021. "Education and migrant entrepreneurship in urban China," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 506-529.
    2. Kerstin Mitterbacher & Stefan Palan & Jürgen Fleiß, 2021. "Labor market choices of migrants and redistributive policies," Working Paper Series, Social and Economic Sciences 2021-02, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    3. Yumei Zhang & Yue Zhan & Xinshen Diao & Kevin Z. Chen & Sherman Robinson, 2021. "The Impacts of COVID‐19 on Migrants, Remittances, and Poverty in China: A Microsimulation Analysis," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(6), pages 4-33, November.
    4. Li Huang & Xue Zhang & Mi Zhou & Brendan Nuse & Liuyin Tong, 2019. "Depressive Symptoms and Migrant Worker Wages: Estimation Based on a Nationally-Representative Panel Dataset," IJERPH, MDPI, vol. 16(6), pages 1-13, March.

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