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The Determinants of Rural Migrants' Employment Choice in China: Results from a Joint Estimation

Author

Listed:
  • Cui, Yuling

    (Macquarie University, Sydney)

  • Nahm, Daehoon

    (Macquarie University, Sydney)

  • Tani, Massimiliano

    (University of New South Wales)

Abstract

This paper investigates the determinants of employment choice of rural migrant workers across state-owned enterprises (SOEs) and various subtypes of non-state owned enterprises (non-SOEs) by taking into account unobservable characteristics that link the choice to migrate with the choice of employer. Using pooled cross-section data for 1995 and 2002, the results indicate that the choice of employment is positively related to unobserved determinants of migration. This result implies that estimating employment choices without controlling for migration status leads to biased estimates. Most rural migrants appear strongly pulled into non-SOEs because of the higher wages and despite longer working hours. The provision of pension benefits also positively motivates employees' choices.

Suggested Citation

  • Cui, Yuling & Nahm, Daehoon & Tani, Massimiliano, 2012. "The Determinants of Rural Migrants' Employment Choice in China: Results from a Joint Estimation," IZA Discussion Papers 6968, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6968
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    References listed on IDEAS

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    More about this item

    Keywords

    SOEs; employment choice; rural migrant workers; non-SOEs; China;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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