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Are workers close to cities paid higher non-agricultural wages in rural China?

Author

Listed:
  • Chloé DUVIVIER
  • Mary-Françoise RENARD

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Shi LI

Abstract

In the present study, we investigate whether workers close to cities are paid higher non-agricultural wages than workers in outlying rural areas. We find that workers close to urban areas not only benefit from more opportunities to engage in non-agricultural activities, but also from better paid jobs. In addition, distance exhibits a strongly nonlinear impact. Distance always has a negative impact on wages but the effect is more detrimental, the closer the village is to the urban center. We also find evidence of urban hierarchy effects: workers living close to bigger cities are paid higher wages. Finally, we provide evidence on the transmission channels at work.

Suggested Citation

  • Chloé DUVIVIER & Mary-Françoise RENARD & Shi LI, 2012. "Are workers close to cities paid higher non-agricultural wages in rural China?," Working Papers 201205, CERDI.
    • Handle: RePEc:cdi:wpaper:1329
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    More about this item

    Keywords

    Remoteness; Regional labor market; China Codes; Wages;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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