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The Retirement Migration Puzzle in China

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  • Chen, Simiao
  • Jin, Zhangfeng
  • Prettner, Klaus

Abstract

We examine whether and how retirement affects migration decisions in China. Using a regression discontinuity (RD) design approach combined with a nationally representative sample of 228,855 adults aged between 40 and 75, we find that retirement increases the probability of migration by 12.9 percentage points. Approximately 38% of the total migration effects can be attributed to inter-temporal substitution (delayed migration). Retirement-induced migrants are lower-educated and have restricted access to social security. Household-level migration decisions can reconcile different migration responses across gender. Retirees migrate for risk sharing and family protection mechnisms, reducing market production of their families in the receiving households.

Suggested Citation

  • Chen, Simiao & Jin, Zhangfeng & Prettner, Klaus, 2020. "The Retirement Migration Puzzle in China," GLO Discussion Paper Series 463, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:463
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    Cited by:

    1. Zhuang Hao & Huihui Cheng & Till Bärnighausen & Simiao Chen, 2024. "The effects of parental retirement on adult children's health: Evidence from China," Health Economics, John Wiley & Sons, Ltd., vol. 33(1), pages 12-20, January.
    2. Jin, Zhangfeng, 2020. "Welfare Magnets and Internal Migration in China," GLO Discussion Paper Series 498, Global Labor Organization (GLO).

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    More about this item

    Keywords

    Retirement; Migration decision; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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