Are workers close to cities paid higher non-agricultural wages in rural China?
AbstractIn the present study, we investigate whether workers close to cities are paid higher non-agricultural wages than workers in outlying rural areas. We find that workers close to urban areas not only benefit from more opportunities to engage in non-agricultural activities, but also from better paid jobs. In addition, distance exhibits a strongly nonlinear impact. Distance always has a negative impact on wages but the effect is more detrimental, the closer the village is to the urban center. We also find evidence of urban hierarchy effects: workers living close to bigger cities are paid higher wages. Finally, we provide evidence on the transmission channels at work.
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Date of creation: 24 Feb 2012
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Remoteness; regional labor market; China Codes; wages;
Other versions of this item:
- Chloe Duvivier & Mary-Françoise RENARD & Shi LI, 2012. "Are workers close to cities paid higher non-agricultural wages in rural China?," Working Papers 201205, CERDI.
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-03-08 (Agricultural Economics)
- NEP-ALL-2012-03-08 (All new papers)
- NEP-DEV-2012-03-08 (Development)
- NEP-GEO-2012-03-08 (Economic Geography)
- NEP-LAB-2012-03-08 (Labour Economics)
- NEP-TRA-2012-03-08 (Transition Economics)
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