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The externality impact of internal migration in China: Linear and nonlinear approaches

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  • Shanfei Zhang

    (University of East Anglia)

Abstract

I analyze the influence of Chinese internal migration on the local labor market outcomes. In this presentation, both linear and quadratic equations are estimated to explore a comprehensive relationship between migrant share and native workers' wages in a city. My findings are twofold. In the ordinary least-squares regression model, every 10% increase in immigrants would lead to a 5.67% decrease in local labor wages. However, in the nonlinear model a turning point is observed. The average wage level decreases when the migrant share is lower than 27.82%, while increases with the migrant share larger than 27.82% are complementary, by IV regression.

Suggested Citation

  • Shanfei Zhang, 2023. "The externality impact of internal migration in China: Linear and nonlinear approaches," French Stata Users' Group Meetings 2023 11, Stata Users Group.
    • Handle: RePEc:boc:fsug23:11
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