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Migrants and Firms : Evidence from China

Author

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  • Imbert, Clément

    (University of Warwick and JPAL)

  • Seror, Marlon

    (University of Bristol, DIAL, Institut Convergences Migrations)

  • Zylberberg, Yanos

    (Chinese University of Hong Kong)

  • Zhang, Yifan

    (University of Bristol, CESifo, the Alan Turing Institute)

Abstract

How does rural-urban migration shape urban production in developing countries? We use longitudinal data on Chinese manufacturing firms between 2001 and 2006, and exploit exogenous variation in rural-urban migration induced by agricultural price shocks for identification. We find that, when immigration increases, manufacturing production becomes more labor-intensive in the short run. In the longer run, firms innovate less, move away from capital-intensive technologies, and adopt final products that use low-skilled labor more intensively. We develop a model with endogenous technological choice, which rationalizes these findings, and we estimate the effect of migration on factor productivity and factor allocation across firms. JEL Classification: D24 ; J23 ; J61 ; O15

Suggested Citation

  • Imbert, Clément & Seror, Marlon & Zylberberg, Yanos & Zhang, Yifan, 2020. "Migrants and Firms : Evidence from China," CAGE Online Working Paper Series 460, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:460
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    Cited by:

    1. Wang, Feicheng & Milner, Chris & Scheffel, Juliane, 2021. "Labour market reform and firm-level employment adjustment: Evidence from the hukou reform in China," Journal of Development Economics, Elsevier, vol. 149(C).
    2. 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, School of Economics, University of Bristol, UK.

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    More about this item

    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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