Self-selection and Earnings of Migrants: Evidence from Rural China
AbstractUsing data from a rural household survey in China, this paper explores the link between employment choice (nonworking, local farm work, local nonfarm work and migratory work) and migrant earnings. We find significant self-selection in migration. Youths, males, better-educated individuals and those in good health are more likely to migrate. In terms of unobserved characteristics, we find positive selection in migration as related to the alternatives of not working and local farm work, and insignificant self-selection as related to local nonfarm work. Controlling for self-selection, the wage returns to gender (male), education and health are lower than those obtained from simple ordinary least squares (OLS), and the returns to experience are higher. More importantly, we find different self-selection between individuals who have moved as pioneers and migrants from households in which other members have already migrated.
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Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 08-25.
Length: 22 pages
Date of creation: Jun 2008
Date of revision:
Migration; Self-selection; Pioneer migrants;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- 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-2008-06-21 (All new papers)
- NEP-CNA-2008-06-21 (China)
- NEP-DEV-2008-06-21 (Development)
- NEP-LAB-2008-06-21 (Labour Economics)
- NEP-MIG-2008-06-21 (Economics of Human Migration)
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