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

  • Chloé DUVIVIER

    ()

  • Mary-Françoise RENARD

    ()

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

  • Shi LI

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.

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Paper provided by CERDI in its series Working Papers with number 201205.

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Length: 28
Date of creation: 2012
Date of revision:
Handle: RePEc:cdi:wpaper:1329
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