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Migrants and Firms: Evidence from China

Author

Listed:
  • Clement Imbert
  • Marlon Seror
  • Yifan Zhang
  • Stephan Yanos Zylberberg

Abstract

This paper estimates the causal effect of rural-urban migration on urban production in China. We use longitudinal data on manufacturing firms between 2001 and 2006 and exploit exogenous variation in rural-urban migration due to agricultural price shocks. Following a migrant inflow, labor costs decline and employment expands. Labor productivity decreases sharply and remains low in the medium run. A quantitative framework suggests that destinations become too labor-abundant and migration mostly benefits low-productivity firms within locations. As migrants select into high-productivity destinations, migration however strongly contributes to the equalization of factor productivity across locations.

Suggested Citation

  • Clement Imbert & Marlon Seror & Yifan Zhang & Stephan Yanos Zylberberg, 2018. "Migrants and Firms: Evidence from China," Bristol Economics Discussion Papers 19/713, Department of Economics, University of Bristol, UK.
  • Handle: RePEc:bri:uobdis:19/713
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Stephan Heblich & Marlon Seror & Hao Xu & Stephan Yanos Zylberberg, 2019. "Industrial clusters in the long run: Evidence from Million-Rouble plants in China," Bristol Economics Discussion Papers 19/712, Department of Economics, University of Bristol, UK.
    2. Stephan Heblich & Marlon Seror & Hao Xu & Yanos Zylberberg, 2019. "Industrial clusters in the long run: evidence from Million-Rouble plants in China," CESifo Working Paper Series 7682, CESifo Group Munich.

    More about this item

    Keywords

    China; productivity.;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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