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Migrant Labor Markets and the Welfare of Rural Households in the Developing World: Evidence from China

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  • Alan de Brauw
  • John Giles

Abstract

Increased ability to migrate from China's rural villages contributed to significant increases in the consumption per capita of both non-durable and durable goods, and these effects were larger in magnitude for households that were relatively poor before the easing of restrictions to migration. With increased out-migration, poorer households invested more in housing and durable goods than rich households, while richer households invested significantly more in non-agricultural production assets. As migration became easier, increased participation in migrant employment was greater among poorer households on both the extensive and intensive margins, and poorer households reduced labor days in agriculture.

Suggested Citation

  • Alan de Brauw & John Giles, 2018. "Migrant Labor Markets and the Welfare of Rural Households in the Developing World: Evidence from China," World Bank Economic Review, World Bank Group, vol. 32(1), pages 1-18.
  • Handle: RePEc:oup:wbecrv:v:32:y:2018:i:1:p:1-18.
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    More about this item

    Keywords

    migration; migrant networks; consumption growth; inequality;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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