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Telecommunication externality on migration: Evidence from Chinese villages

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  • Lu, Yi
  • Xie, Huihua
  • Xu, Lixin Colin

Abstract

We use a unique data set of Chinese villages to investigate whether access to telecommunications, in particular, landline phones, increases the likelihood of outmigration. By using regional and time variations in the installation of landline phones, our difference-in-difference estimation shows that the access to landline phones increases the ratio of out-migrant workers by 2 percentage points, or about 51% of the sample mean in China. The results remain robust to a battery of validity checks. Furthermore, landline phones affect outmigration through two channels: information access on job opportunities and especially timely contact with left-behind family members. Our findings underscore the positive migration externality of expanding telecommunications access in rural areas, especially in places where migration potential is large.

Suggested Citation

  • Lu, Yi & Xie, Huihua & Xu, Lixin Colin, 2016. "Telecommunication externality on migration: Evidence from Chinese villages," China Economic Review, Elsevier, vol. 39(C), pages 77-90.
    • Handle: RePEc:eee:chieco:v:39:y:2016:i:c:p:77-90
    DOI: 10.1016/j.chieco.2016.03.007
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    Cited by:

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    2. Fang, Lan & Quan, Yurong & Mao, Hui & Chen, Shaojian, 2022. "The Information Communication Technology and Off-farm Employment of Rural Laborers: An Analysis Based on the Micro Data of China Family Panel Studies," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322088, Agricultural and Applied Economics Association.
    3. Danyang Li & Daizo Kojima & Laping Wu & Mitsuyoshi Ando, 2024. "Impact of rural households' digital ability on their production efficiency in China," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 139-160, January.
    4. Zheng Cai & Shengsheng Li & Di Cheng, 2023. "Has Digital Village Construction Improved Rural Family Resilience in China? Evidence Based on China Household Finance Survey," Sustainability, MDPI, vol. 15(11), pages 1-20, May.
    5. Sheng Liu & Ming Bai & Min Yao & Ke Huang, 2021. "Identifying the natural and anthropogenic factors influencing the spatial disparity of population hollowing in traditional villages within a prefecture-level city," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-21, April.

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    More about this item

    Keywords

    Landline phones; Telecommunications; Migration; Network effect; Psychological costs; China;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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