Do Public Work Schemes Deter or Encourage Outmigration? Empirical Evidence from China
AbstractHow does the introduction of rural public work schemes impact individual incentives to migrate? This paper examines this question in the context of rural public work program (Yigong-daizhen) in China, and unveils empirical evidence that suggest that the introduction of Yigong-daizhen projects in fact stimulates outmigration at the village level, after controlling for village characteristics and project types. By furthermore accounting for the endogeneity of Yigong-daizhen placement, the impact of such projects is found to be even larger. These results are consistent with household migration behavior in the presence of significant cost of migration, and credit market imperfection.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8778.
Date of creation: Jan 2012
Date of revision:
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Find related papers by JEL classification:
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-28 (All new papers)
- NEP-MIG-2012-03-28 (Economics of Human Migration)
- NEP-PPM-2012-03-28 (Project, Program & Portfolio Management)
- NEP-TRA-2012-03-28 (Transition Economics)
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