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Living Standards Inequality Between Migrants And Local Residents In Urban China—A Quantile Decomposition

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  • Zheng Fang
  • Chris Sakellariou

Abstract

type="main" xml:id="coep12125-abs-0001"> This study investigates the inequality in per-capita consumption expenditure between urban and rural-to-urban migrant households in China using Rural-Urban Migration in China (RUMiC) data. The methodology used is that of Oaxaca-Blinder and unconditional quantile decompositions and we deal with selection related to education level using matching. It is found that the characteristics effect does not contribute toward explaining any of the gaps in consumption. Results from a detailed decomposition suggest that differences in educational level account for 8%–19% of the overall inequality after taking selectivity of education into consideration. Differences in household size and region of residence are also important in narrowing expenditure inequality between the two groups. (JEL R23, C15)

Suggested Citation

  • Zheng Fang & Chris Sakellariou, 2016. "Living Standards Inequality Between Migrants And Local Residents In Urban China—A Quantile Decomposition," Contemporary Economic Policy, Western Economic Association International, vol. 34(2), pages 369-386, April.
    • Handle: RePEc:bla:coecpo:v:34:y:2016:i:2:p:369-386
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    File URL: http://hdl.handle.net/10.1111/coep.2016.34.issue-2
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    Cited by:

    1. Chen, Xiaofen, 2018. "Why do migrant households consume so little?," China Economic Review, Elsevier, vol. 49(C), pages 197-209.
    2. Cheng, Zhiming, 2021. "Education and consumption: Evidence from migrants in Chinese cities," Journal of Business Research, Elsevier, vol. 127(C), pages 206-215.

    More about this item

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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