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Are workers close to cities paid higher nonagricultural wages in rural China?

Author

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  • Chloé Duvivier

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Shi Li

    (SEBA - School of Economics and Business Administration - Beijing Normal University)

  • Mary-Françoise Renard

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

In the present study, we investigate whether workers close to cities are paid higher non-agricultural wages than workers in outlying rural areas. Using data from the nationally representative 2002 CHIP survey, we estimate that rural workers close to urban areas not only benefit from more opportunities to engage in non-agricultural activities, but also from better paid jobs. We also find very robust evidence that workers close to the biggest cities benefit from the highest wage premium (urban hierarchy effects). In addition, the closer to the urban center, the more detrimental is the impact of distance on wages. Finally, we provide evidence on the transmission channels at work.

Suggested Citation

  • Chloé Duvivier & Shi Li & Mary-Françoise Renard, 2013. "Are workers close to cities paid higher nonagricultural wages in rural China?," Post-Print halshs-00819122, HAL.
  • Handle: RePEc:hal:journl:halshs-00819122
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00819122
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    Cited by:

    1. Chloé Duvivier, 2013. "Does Urban Proximity Enhance Technical Efficiency? Evidence From Chinese Agriculture," Journal of Regional Science, Wiley Blackwell, vol. 53(5), pages 923-943, December.

    More about this item

    Keywords

    urban proximity; wage differentials; regional labor market; China;

    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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