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Income Differential and Out-migration: the Impacts of Between-gap and Within-gap


  • Zhongmin Wu
  • Yu Zhu


In this paper, we use pooled cross-sectional data on 28 provinces to study out-migration in China. In particular, we estimate inter- and intra-province rural-to-urban migration in a simultaneous-equations model. Allowing for the joint determination of inter- and intra-migration, we find the effect of the within province rural-urban income gap on intra-province migration to be almost three times as strong as that of the between province urban wage gap on inter-province migration.

Suggested Citation

  • Zhongmin Wu & Yu Zhu, 2004. "Income Differential and Out-migration: the Impacts of Between-gap and Within-gap," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(1), pages 27-37.
  • Handle: RePEc:taf:jocebs:v:2:y:2004:i:1:p:27-37 DOI: 10.1080/14765280310001631363

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    References listed on IDEAS

    1. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-553, September.
    2. Knight, John & Song, Lina, 1999. "Employment Constraints and Sub-optimality in Chinese Enterprises," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 284-299, April.
    3. Bhattacharya, Prabir C, 1993. " Rural-Urban Migration in Economic Development," Journal of Economic Surveys, Wiley Blackwell, vol. 7(3), pages 243-281, September.
    4. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, June.
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    Cited by:

    1. 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.

    More about this item


    Out-migration; income differential; China; JEL classifications: R23; I61;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population


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