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The effects of state-led relocation on labor market participation: Evidence from China

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  • Zhou, Zhengyi

Abstract

The urbanization of China has been accompanied by large-scale state-led relocation (SLR) programs. This paper studies the effects of urban SLR on labor market participation. With three waves of China Household Finance Survey (CHFS), we find that urban SLR reduces labor market participation, on both the extensive margin and the intensive margin. The reduction is stronger for females, and there is some substitute effect between husbands and wives. The reduction is also stronger for individuals who are elder and less educated, and who choose lump sums of monetary compensation. Finally, we find no evidence that urban SLR experience stimulates business creation.

Suggested Citation

  • Zhou, Zhengyi, 2022. "The effects of state-led relocation on labor market participation: Evidence from China," China Economic Review, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:chieco:v:73:y:2022:i:c:s1043951x21001243
    DOI: 10.1016/j.chieco.2021.101706
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    Cited by:

    1. Zhou, Zhengyi, 2025. "House price co-movement and labor migration: Evidence from China," Emerging Markets Review, Elsevier, vol. 69(C).
    2. Wang, Chao & Geng, Wei, 2025. "Local government debt and household human capital investment," Finance Research Letters, Elsevier, vol. 79(C).
    3. Yongtian Zhu & Rui Guan & Jin Yu, 2022. "How Does Poverty Alleviation Relocation Affect the Non-Agricultural Employment of Women’s Labor Forces? Evidence from Southern Shaanxi Province," Land, MDPI, vol. 12(1), pages 1-18, December.
    4. Xu, Hangtian & Zheng, Wenzhuo, 2024. "Growth-driven shantytown redevelopment and housing market dynamics in the low-tier cities of China," MPRA Paper 124326, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

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