The rise of migration and the fall of self employment in rural China's labor market
AbstractWhen examining questions regarding the Lewis model, one of the most salient set of facts involves the shift of labor between agricultural and the off farm sectors. The goal of this paper is to answer several questions about the nature of this movement: How has the expansion of the economy after 2000 affected off farm labor market participation? Has off farm labor continued to rise? What is this rise being driven by—migrant wage earners or self employment opportunities? What is, in part, driving these trends? Using a national representative set of data that consists of two waves of surveys done in 2000 and 2008 in six provinces, the paper finds that off farm labor market participation has continued to rise steadily in the early 2000s. However, there has been a structural break in the trends of occupational choice before and after 2000. Unlike before 2000, after 2000 migration's growth accelerated; during this same period the self employed subsector stagnated. The number of wage earning migrants in 2008 was greater than the number of those in the self employed subsector. The data also show that the rise in wage-earning migration is mainly being driven by the younger cohorts. Our analysis also shows that the rise of migration is happening in conjunction with a rising unskilled wage.
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Bibliographic InfoArticle provided by Elsevier in its journal China Economic Review.
Volume (Year): 22 (2011)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/chieco
Self-employment; Migration; Wages; Rural China;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
- N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
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- Sylvie Démurger & Shi Li, 2012. "Migration, Remittances and Rural Employment Patterns: Evidence from China," Working Papers halshs-00744438, HAL.
- Wong, Ho Lun & Luo, Renfu & Zhang, Linxiu & Rozelle, Scott, 2013. "Providing quality infrastructure in rural villages: The case of rural roads in China," Journal of Development Economics, Elsevier, vol. 103(C), pages 262-274.
- Sylvie Démurger & Shi Li, 2012.
"Migration, Remittances and Rural Employment Patterns: Evidence from China,"
- Sylvie Démurger & Li Shi, 2012. "Migration, Remittances and Rural Employment Patterns : Evidence from China," Working Papers 1230, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
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