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Wage Growth through Job Hopping in China

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  • Ariga, Kenn

    ()
    (Kyoto University)

  • Ohtake, Fumio

    ()
    (Osaka University)

  • Sasaki, Masaru

    ()
    (Osaka University)

  • Wu, Zheren

    (Kinki University)

Abstract

This paper uses a unique survey of the Chinese youth to construct a panel data in which we keep track of geographical and job mobilities. Our estimation results deliver the following major findings. (1) The sample individuals are highly mobile. Job quits and relocations are frequent and they are closely correlated. We find that job hopping to be highly productive as our estimates indicate each job quit generates more than .2 log increase in monthly wage. (2) The migrant disadvantage in urban labor market is compensated by their higher job mobility. After four jobs, the expected earnings differentials essentially disappear. We also find that migration and job mobility are highly selective processes. Our evidence indicates that the migrants are positively selected. (3) Job and location mobilities are highly dependent upon family back ground and personal traits which we interpret as representing unobservable characteristics associated with risk taking, active and optimistic personality, as well as the implied economic incentives to migrate and keep searching for better jobs.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7104.

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Length: 61 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:iza:izadps:dp7104

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Keywords: wage growth; migration; school to work transition;

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  1. Jason Gagnon & Theodora Xenogiani & Chunbing Xing, 2009. "Are all Migrants Really Worse off in Urban Labour Markets?: New empirical evidence from China," OECD Development Centre Working Papers 278, OECD Publishing.
  2. de Brauw, Alan & Giles, John T., 2012. "Migrant Labor Markets and the Welfare of Rural Households in the Developing World: Evidence from China," IZA Discussion Papers 6765, Institute for the Study of Labor (IZA).
  3. Kenn Ariga & Masako Kurosawa & Fumio Ohtake & Masaru Sasaki, 2012. "How Do High School Graduates In Japan Compete For Regular, Full-Time Jobs? An Empirical Analysis Based Upon An Internet Survey Of The Youth," The Japanese Economic Review, Japanese Economic Association, vol. 63(3), pages 348-379, 09.
  4. Ayako Kondo & Dongshu Ou, 2010. "In Search of a Better Life: The Occupational Attainment of Rural and Urban Migrants in China," ISER Discussion Paper 0793, Institute of Social and Economic Research, Osaka University.
  5. Sylvie Démurger & Marc Gurgand & Li Shi & Yu Ximing, 2008. "Migrants as second-class workers in urban China? A decomposition analysis," Working Papers 0808, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  6. Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
  7. Lehmer, Florian & Ludsteck, Johannes, 2008. "The returns to job mobility and inter-regional migration," IAB Discussion Paper 200806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  8. Zheren Wu, 2010. "Self-selection and Earnings of Migrants: Evidence from Rural China," Asian Economic Journal, East Asian Economic Association, vol. 24(1), pages 23-44, 03.
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