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Wage premium, functioning labor markets, and the role of education: Evidence from rural China

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  • Wang, W.

Abstract

This paper assess the China s rural labor market by exploring the role of education playing in the wage premium among different job location by using samples covering more than 2000 households in 100 villages which are nationally representative. The results indicate that the rural labor markets are functioning and reflect as follows: (i) Whether the definitions of migration are, there are obvious wage premiums of migrants and with the boundary that we defined gradually away from the home township of rural labor, the wage premium becomes more obviously. At the same time, we find the return to education of migrants is significantly higher than those work locally. (ii) Compared to the labor force employed in his/her township, those who worked in other job locations all have a significant wage premium when we have a more comprehensive division after considering the employment distance and cost of living. (iii) Only work in the big cities has a consistent significantly higher return to education than work within labor s home township. Acknowledgement : Funding: This work was supported by the National Natural Science Foundation of China [grant number 71333012].

Suggested Citation

  • Wang, W., 2018. "Wage premium, functioning labor markets, and the role of education: Evidence from rural China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276942, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:276942
    DOI: 10.22004/ag.econ.276942
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    References listed on IDEAS

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    1. Zhang, Linxiu & Huang, Jikun & Rozelle, Scott, 2002. "Employment, emerging labor markets, and the role of education in rural China," China Economic Review, Elsevier, vol. 13(2-3), pages 313-328.
    2. Haiqing Zhang & Linxiu Zhang & Renfu Luo & Qiang Li, 2008. "Does Education Still Pay Off in Rural China: Revisit the Impact of Education on Off‐farm Employment and Wages," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(2), pages 50-65, March.
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    1. Mirela Cristea & Grațiela Georgiana Noja, 2022. "Education and labour market performance in Romania. An empirical analysis of the urban-rural gap," Journal of Financial Studies, Institute of Financial Studies, vol. 12(7), pages 89-104, May.

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