Self-employment of rural-to-urban migrants in China
This paper focuses on the determinants of self-employment among rural to urban migrants in China. Two self-selection mechanisms are analysed: the first relates to the manner in which migrants choose self-employment or paid work based on the potential gains from either type of employment; the second takes into account that the determinants of the migration decision can be correlated with employment choices. Using data from the 2008 Rural-Urban Migration in China and Indonesia (RUMiCI) survey, a selection model with endogenous switching is estimated. Earnings estimates are then used to derive the wage differential, which in turn is used to model the employment choice. The procedure is extended to account for migration selectivity and to compare individuals with different migration background and employment histories. The results indicate that self-employed individuals are positively selected with respect to their unobserved characteristics. Furthermore, the wage differential is found to be an important driver of the self-employment choice.
|Date of creation:||Jul 2011|
|Contact details of provider:|| Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ.|
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Willis, Robert J & Rosen, Sherwin, 1979.
"Education and Self-Selection,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages 7-36, October.
- Robert J. Willis & Sherwin Rosen, 1978. "Education and Self-Selection," NBER Working Papers 0249, National Bureau of Economic Research, Inc.
- Arias, Omar & Khamis, Melanie, 2008. "Comparative Advantage, Segmentation and Informal Earnings: A Marginal Treatment Effects Approach," IZA Discussion Papers 3916, Institute for the Study of Labor (IZA).
- Herbert BrÃ¼cker & Parvati TrÃ¼bswetter, 2007. "Do the best go west? An analysis of the self-selection of employed East-West migrants in Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(4), pages 371-395, September.
- Herbert Brücker & Parvati Trübswetter, 2004. "Do the Best Go West?: An Analysis of the Self-Selection of Employed East-West Migrants in Germany," Discussion Papers of DIW Berlin 396, DIW Berlin, German Institute for Economic Research.
- Brücker, Herbert & Trübswetter, Parvati, 2004. "Do the Best Go West? An Analysis of the Self-Selection of Employed East-West Migrants in Germany," IZA Discussion Papers 986, Institute for the Study of Labor (IZA).
- Blanchflower, David G & Oswald, Andrew J, 1998. "What Makes an Entrepreneur?," Journal of Labor Economics, University of Chicago Press, vol. 16(1), pages 26-60, January.
- Blanchflower, D.G. & Oswald, A., 1991. "What Makes an Entrepreneur?," Economics Series Working Papers 99125, University of Oxford, Department of Economics.
- Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
- Catalina Amuedo-Dorantes & Kusum Mundra, 2007. "Social networks and their impact on the earnings of Mexican Migrants," Demography, Springer;Population Association of America (PAA), vol. 44(4), pages 849-863, November.
- Constant, Amelie F. & Zimmermann, Klaus F., 2005. "Legal Status at Entry, Economic Performance, and Self-employment Proclivity: A Bi-national Study of Immigrants," IZA Discussion Papers 1910, Institute for the Study of Labor (IZA).
- Constant, Amelie & Zimmermann, Klaus F, 2006. "Legal Status at Entry, Economic Performance and Self-Employment Proclivity: A Bi-National Study of Immigrants," CEPR Discussion Papers 5696, C.E.P.R. Discussion Papers.
- Amelie Constant & Klaus F. Zimmermann, 2006. "Legal Status at Entry, Economic Performance, and Self-Employment Proclivity: A Bi-National Study of Immigrants," Discussion Papers of DIW Berlin 547, DIW Berlin, German Institute for Economic Research.
- Hongbin Li & Zheyu Yang & Xianguo Yao & Junsen Zhang, 2009. "Entrepreneurship and Growth: Evidence from China," Discussion Papers 00022, Chinese University of Hong Kong, Department of Economics.
- Gagnon, Jason & Xenogiani, Theodora & Xing, Chunbing, 2009. "Are all migrants really worse off in urban labour markets: new empirical evidence from China," MPRA Paper 16109, University Library of Munich, Germany.
- Jason Gagnon & Theodora Xenogiani & Chunbing Xing, 2009. "Are all Migrants Really Worse off in Urban Labour Markets?: New empirical evidence from China," OECD Development Centre Working Papers 278, OECD Publishing.
- Gagnon, Jason & Xenogiani, Theodora & Xing, Chunbing, 2011. "Are All Migrants Really Worse Off in Urban Labour Markets? New Empirical Evidence from China," IZA Discussion Papers 6268, Institute for the Study of Labor (IZA).
- Jason Gagnon & Theodora Xenogiani & Chunbing Xing, 2012. "Are All Migrants Really Worse Off in Urban Labour Markets? New Empirical Evidence from China," Working Papers id:4698, eSocialSciences.
- Rosen, Harvey S., 1979. "Housing decisions and the U.S. income tax : An econometric analysis," Journal of Public Economics, Elsevier, vol. 11(1), pages 1-23, February.
- Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September.
- Birgitta Rabe, 2011. "Dual-earner migration. Earnings gains, employment and self-selection," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(2), pages 477-497, April.
- Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-433, June.
- Nopo, Hugo R. & Valenzuela, Patricio, 2007. "Becoming an Entrepreneur," IZA Discussion Papers 2716, Institute for the Study of Labor (IZA).
- Hugo Ñopo & Patricio Valenzuela, 2007. "Becoming an Entrepreneur," Research Department Publications 4519, Inter-American Development Bank, Research Department.
- Patricio Valenzuela & Hugo R. Ñopo, 2007. "Becoming an Entrepreneur," IDB Publications (Working Papers) 6844, Inter-American Development Bank.
- Veall, Michael R & Zimmermann, Klaus F, 1996. " Pseudo-R-[superscript 2] Measures for Some Common Limited Dependent Variable Models," Journal of Economic Surveys, Wiley Blackwell, vol. 10(3), pages 241-259, September.
- Sherry Tao Kong, 2010. "Rural–Urban Migration in China: Survey Design and Implementation," Chapters, in: The Great Migration, chapter 7 Edward Elgar Publishing.
- David Roodman, 2009. "Estimating Fully Observed Recursive Mixed-Process Models with cmp," Working Papers 168, Center for Global Development.
- Junfu Zhang & Zhong Zhao, 2015. "Social-family network and self-employment: evidence from temporary rural–urban migrants in China," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
- Zhang, Junfu & Zhao, Zhong, 2011. "Social-Family Network and Self-Employment: Evidence from Temporary Rural-Urban Migrants in China," IZA Discussion Papers 5446, Institute for the Study of Labor (IZA).
- Song, Lina & Appleton, Simon, 2008. "Social Protection and Migration in China: What Can Protect Migrants from Economic Uncertainty?," IZA Discussion Papers 3594, Institute for the Study of Labor (IZA). Full references (including those not matched with items on IDEAS)