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Employment Choice And Ownership Structure In Transitional China

Author

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  • YULING CUI

    (Faculty of Economics and Management, Xi’an University of Technology, Xi’an, 710048, P. R. China)

  • DAEHOON NAHM

    () (Department of Economics, Macquarie University, Sydney, NSW 2109, Australia)

  • MASSIMILIANO TANI

    () (School of Business, UNSW Canberra, Northcott Dr, Campbell ACT 2612, Australia)

Abstract

This paper investigates the determinants of employment choice of rural migrant workers across state-owned enterprises (SOEs) and various subtypes of non-state owned enterprises (non-SOEs) by taking into account of the unobservable characteristics that link the choice to migrate with the choice of employer. Using pooled cross-section data for 1995 and 2002, the results indicate that the decisions for migration and the choice of employment are related, suggesting that estimating employment choices without considering migration status leads to biased estimates. We find that both higher paid wages and broader pension benefits are major determinants of employment choice. Of these, pension benefits have a larger impact than high-level wages in increasing the employment probability for either type of enterprise.

Suggested Citation

  • Yuling Cui & Daehoon Nahm & Massimiliano Tani, 2017. "Employment Choice And Ownership Structure In Transitional China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 62(02), pages 325-344, June.
  • Handle: RePEc:wsi:serxxx:v:62:y:2017:i:02:n:s0217590815500885
    DOI: 10.1142/S0217590815500885
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    References listed on IDEAS

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    Keywords

    Rural migrants; employment choice; SOEs; non-SOEs; China;

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