IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v52y2015i4p639-664.html
   My bibliography  Save this article

Self-employment and intention of permanent urban settlement: Evidence from a survey of migrants in China’s four major urbanising areas

Author

Listed:
  • Guangzhong Cao

    (College of Urban and Environmental Sciences, Peking University, China)

  • Ming Li

    (Renmin University of China, China)

  • Yan Ma

    (National Caijing Magazine Xinhua News Agency, China)

  • Ran Tao

    (Renmin University of China, China)

Abstract

Drawing on a survey of migrants in 12 cities across four major urbanising areas in China, this paper analyses rural migrants’ intention for permanent urban settlement. We focus on one sizeable but often overlooked group of rural migrants, that is, the self-employed. Our hypothesis is that the self-employed migrants tend to have stronger intention for permanent urban settlement since they are usually more ingrained in urban economy and society. The empirical evidence supports our hypothesis. Moreover, the social and economic choices made by the self-employed migrants are consistent with their expressed intentions: they are more likely to migrate with spouses and to live with their family members, more likely to have a plan for house purchase in cities; they are also more integrated into urban society in terms of learning local dialects and making friends with local permanent residents.

Suggested Citation

  • Guangzhong Cao & Ming Li & Yan Ma & Ran Tao, 2015. "Self-employment and intention of permanent urban settlement: Evidence from a survey of migrants in China’s four major urbanising areas," Urban Studies, Urban Studies Journal Limited, vol. 52(4), pages 639-664, March.
  • Handle: RePEc:sae:urbstu:v:52:y:2015:i:4:p:639-664
    DOI: 10.1177/0042098014529346
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098014529346
    Download Restriction: no

    File URL: https://libkey.io/10.1177/0042098014529346?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Stark, Oded & Helmenstein, Christian & Prskawetz, Alexia, 1997. "A brain gain with a brain drain," Economics Letters, Elsevier, vol. 55(2), pages 227-234, August.
    2. Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
    3. Oded Stark, 1996. "On the Microeconomics of Return Migration," Palgrave Macmillan Books, in: V. N. Balasubramanyam & D. Greenaway (ed.), Trade and Development, chapter 3, pages 32-41, Palgrave Macmillan.
    4. Gong, Xiaodong & van Soest, Arthur, 2002. "Wage differentials and mobility in the urban labour market: a panel data analysis for Mexico," Labour Economics, Elsevier, vol. 9(4), pages 513-529, September.
    5. Todaro, Michael P, 1969. "A Model for Labor Migration and Urban Unemployment in Less Developed Countries," American Economic Review, American Economic Association, vol. 59(1), pages 138-148, March.
    6. Constant, Amelie & Zimmermann, Klaus F., 2005. "Immigrant Performance and Selective Immigration Policy: A European Perspective," National Institute Economic Review, National Institute of Economic and Social Research, vol. 194, pages 94-105, October.
    7. Dustmann, Christian & Kirchkamp, Oliver, 2002. "The optimal migration duration and activity choice after re-migration," Journal of Development Economics, Elsevier, vol. 67(2), pages 351-372, April.
    8. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    9. Zhu, Nong, 2002. "The impacts of income gaps on migration decisions in China," China Economic Review, Elsevier, vol. 13(2-3), pages 213-230.
    10. Zhongdong Ma, 2001. "Urban Labour-Force Experience as a Determinant of Rural Occupation Change: Evidence from Recent Urban-Rural Return Migration in China," Environment and Planning A, , vol. 33(2), pages 237-255, February.
    11. Rachel Murphy, 1999. "Return migrant entrepreneurs and economic diversification in two counties in south Jiangxi, China," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(4), pages 661-672.
    12. Youqin Huang & Leiwen Jiang, 2009. "Housing Inequality in Transitional Beijing," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(4), pages 936-956, December.
    13. YUEH, Linda, 2009. "Self-employment in urban China: Networking in a transition economy," China Economic Review, Elsevier, vol. 20(3), pages 471-484, September.
    14. Evan J. Douglas & Dean A. Shepherd, 2002. "Self-Employment as a Career Choice: Attitudes, Entrepreneurial Intentions, and Utility Maximization," Entrepreneurship Theory and Practice, , vol. 26(3), pages 81-90, April.
    15. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
    16. Chiburis, Richard C. & Das, Jishnu & Lokshin, Michael, 2012. "A practical comparison of the bivariate probit and linear IV estimators," Economics Letters, Elsevier, vol. 117(3), pages 762-766.
    17. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
    18. Todaro, Michael P, 1986. "Internal Migration and Urban Employment: Comment," American Economic Review, American Economic Association, vol. 76(3), pages 566-569, June.
    19. Mazumdar, Dipak, 1983. "Segmented Labor Markets in LDCs," American Economic Review, American Economic Association, vol. 73(2), pages 254-259, May.
    20. Jensen, Kraen Blume & Ejrnaes, Mette & Nielsen, Helena Skyt & Würtz, Allan, "undated". "Self-Employment among Immigrants: A Last Resort?," Economics Working Papers 2003-13, Department of Economics and Business Economics, Aarhus University.
    21. Zhao, Yaohui, 2002. "Causes and Consequences of Return Migration: Recent Evidence from China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 376-394, June.
    22. Mohapatra, Sandeep & Rozelle, Scott & Goodhue, Rachael, 2007. "The Rise of Self-Employment in Rural China: Development or Distress?," World Development, Elsevier, vol. 35(1), pages 163-181, January.
    23. Alan De Brauw & Scott Rozelle, 2008. "Reconciling the Returns to Education in Off‐Farm Wage Employment in Rural China," Review of Development Economics, Wiley Blackwell, vol. 12(1), pages 57-71, February.
    24. Andrew Henley, 2004. "Self-Employment Status: The Role of State Dependence and Initial Circumstances," Small Business Economics, Springer, vol. 22(1), pages 67-82, February.
    25. Zhang, Huafeng, 2010. "The Hukou system's constraints on migrant workers' job mobility in Chinese cities," China Economic Review, Elsevier, vol. 21(1), pages 51-64, March.
    26. Dunn, Thomas & Holtz-Eakin, Douglas, 2000. "Financial Capital, Human Capital, and the Transition to Self-Employment: Evidence from Intergenerational Links," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 282-305, April.
    27. Hu, Feng & Xu, Zhaoyuan & Chen, Yuyu, 2011. "Circular migration, or permanent stay? Evidence from China's rural-urban migration," China Economic Review, Elsevier, vol. 22(1), pages 64-74, March.
    28. Alice Mesnard, 2004. "Temporary migration and capital market imperfections," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 242-262, April.
    29. Yang, Dean, 2009. "International Migration and Human Development," MPRA Paper 19212, University Library of Munich, Germany.
    30. Nelson, Joan M, 1976. "Sojourners versus New Urbanites: Causes and Consequences of Temporary versus Permanent Cityward Migration in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 24(4), pages 721-757, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christine Wen & Jeremy L. Wallace, 2019. "Toward Human-Centered Urbanization? Housing Ownership and Access to Social Insurance Among Migrant Households in China," Sustainability, MDPI, vol. 11(13), pages 1-14, June.
    2. Wang, Chunchao & Zhang, Chenglei & Ni, Jinlan & Zhang, Haifeng & Zhang, Junsen, 2019. "Family migration in China: Do migrant children affect parental settlement intention?," Journal of Comparative Economics, Elsevier, vol. 47(2), pages 416-428.
    3. Shukui Tan & Yanan Li & Yan Song & Xiang Luo & Min Zhou & Lu Zhang & Bing Kuang, 2017. "Influence factors on settlement intention for floating population in urban area: a China study," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(1), pages 147-176, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Démurger, Sylvie & Xu, Hui, 2011. "Return Migrants: The Rise of New Entrepreneurs in Rural China," World Development, Elsevier, vol. 39(10), pages 1847-1861.
    2. Shashwati Banerjee & Kishor Goswami, 2020. "Self-employed or Paid Employed: Who can Earn more among the Slum Dwellers and Why?," Progress in Development Studies, , vol. 20(1), pages 7-25, January.
    3. Hu, Feng, 2015. "Return to Education for China’s Return Migrant Entrepreneurs," World Development, Elsevier, vol. 72(C), pages 296-307.
    4. Yu Zhu & Zhongmin Wu & Meiyan Wang & Yang Du & Fang Cai, 2011. "Do Migrants Really Save More? Understanding the Impact of Remittances on Savings in Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 654-672, June.
    5. Junfu Zhang & Zhong Zhao, 2015. "Social-family network and self-employment: evidence from temporary rural–urban migrants in China," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
    6. Hu, Feng & Xu, Zhaoyuan & Chen, Yuyu, 2011. "Circular migration, or permanent stay? Evidence from China's rural-urban migration," China Economic Review, Elsevier, vol. 22(1), pages 64-74, March.
    7. Bickenbach, Frank & Dohse, Dirk & Liu, Wan-Hsin, 2014. "An inquiry into the determinants of graduate entrepreneurship in Hong Kong and Guangzhou (Mainland China)," Kiel Working Papers 1940, Kiel Institute for the World Economy (IfW Kiel).
    8. Wang, Chunchao & Zhang, Chenglei & Ni, Jinlan & Zhang, Haifeng & Zhang, Junsen, 2019. "Family migration in China: Do migrant children affect parental settlement intention?," Journal of Comparative Economics, Elsevier, vol. 47(2), pages 416-428.
    9. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    10. SHI, Xiaoping & Heerink, Nico & Qu, Futian, 2007. "Choices between different off-farm employment sub-categories: An empirical analysis for Jiangxi Province, China," China Economic Review, Elsevier, vol. 18(4), pages 438-455.
    11. Alice Mesnard & Martin Ravallion, 2006. "The Wealth Effect on New Business Startups in a Developing Economy," Economica, London School of Economics and Political Science, vol. 73(291), pages 367-392, August.
    12. repec:dau:papers:123456789/4306 is not listed on IDEAS
    13. Jialu Liu, 2011. "Human capital, migration and rural entrepreneurship in China," Indian Growth and Development Review, Emerald Group Publishing Limited, vol. 4(2), pages 100-122, September.
    14. Luis Miguel Tovar Cuevas & María Teresa Victoria Paredes, 2013. "Migración internacional de retorno y emprendimiento: revisión de la literatura," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 15(29), pages 41-65, July-Dece.
    15. Feng Hu, 2014. "Risk Attitudes and Self-employment in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 22(3), pages 101-120, July.
    16. de Brauw, Alan & Rozelle, Scott, 2008. "Migration and household investment in rural China," China Economic Review, Elsevier, vol. 19(2), pages 320-335, June.
    17. Liqiong Lin & Mohamad D. Revindo & Christopher Gan & Quang Thi Thieu Nguyen, 2021. "Return home and start new businesses: internal migration in China," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 49-66, May.
    18. Bei Luo & Terence Tai-Leung Chong, 2019. "Regional differences in self-employment in China," Small Business Economics, Springer, vol. 53(3), pages 813-837, October.
    19. Dirk Dohse & Sascha Walter, 2012. "Knowledge context and entrepreneurial intentions among students," Small Business Economics, Springer, vol. 39(4), pages 877-895, November.
    20. Dong, Qi & Murakami, Tomoaki & Nakashima, Yasuhiro, 2018. "Modeling the Labor Transfers from the Agricultural Sector to the Non-agricultural Sector under Food Supply Constraint in China," 2018 Annual Meeting, August 5-7, Washington, D.C. 274161, Agricultural and Applied Economics Association.
    21. Qing Wang & Ting Ren & Ti Liu, 2019. "Training, skill-upgrading and settlement intention of migrants: Evidence from China," Urban Studies, Urban Studies Journal Limited, vol. 56(13), pages 2779-2801, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:52:y:2015:i:4:p:639-664. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.