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Labor Mobility, Marketization and Urban Income Change: Potential Rural-Urban Harmonization or Not

Author

Listed:
  • Kunrong Shen

    (School of Economics, Nanjing University, Nanjing 210093, China)

  • Jixiang Yu

    (Economy and Trade Department, Anhui Science and Technology University, Fengyang 233100, China)

  • Jian Li

    (School of Economics, Nanjing University, Nanjing 210093, China)

Abstract

Previous literature omitted marketization process, a distinct phenomenon in transitional China, when the relationship between immigrants and indigenous urban income is investigated. We find that (1) marketization is a key factor of rural-urban harmonization; (2) segmentation of labor market has no real effect on urban income change since it may be evaded partly by rural labor; (3) the key determinants of urban income change are the cross effect between marketization and mobility, openness, and government spending; and (4) the marginal effect of immigrants is positive in some regions although it is averagely negative during the sample period. Rural-urban harmonization is totally possible if marketization process continues.

Suggested Citation

  • Kunrong Shen & Jixiang Yu & Jian Li, 2011. "Labor Mobility, Marketization and Urban Income Change: Potential Rural-Urban Harmonization or Not," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 6(3), pages 447-463, September.
    • Handle: RePEc:fec:journl:v:6:y:2011:i:3:p:447-463
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-011-0141-5
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    More about this item

    Keywords

    labor mobility; urban income; marketization; segmentation; rural- urban harmonization;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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