IDEAS home Printed from https://ideas.repec.org/p/hhs/hascer/2014-031.html
   My bibliography  Save this paper

Self-employment Choices of Rural Migrants in China: Distance and Social Network

Author

Listed:
  • Zhou, Yexin

    () (Stockholm China Economic Research Institute)

  • Chen, Mo
  • Ye, Jingyi

Abstract

In Chinese cities, rural migrants on average are less educated and poorer than the urban locals. Migration is costly, especially for those who choose to move to provinces faraway from their hometowns. A larger fraction of the rural migrants are self-employed than that of the urban locals. The social contacts of migrants in the host cities often help them to find jobs or to start businesses. We studied the choice of self-employment of rural migrants in Beijing, using a migrant dataset collected from 2007 to 2012. The result shows that the self-employed rural migrants in Beijing tend to be females, migrating from faraway provinces, with more social contacts, and either having the highest education or the lowest. Education and social capital are positively correlated with earning for both wage-earners and self-employed, with different magnitudes. We use a search model to explain this.

Suggested Citation

  • Zhou, Yexin & Chen, Mo & Ye, Jingyi, 2014. "Self-employment Choices of Rural Migrants in China: Distance and Social Network," Stockholm School of Economics Asia Working Paper Series 2014-31, Stockholm School of Economics, Stockholm China Economic Research Institute.
  • Handle: RePEc:hhs:hascer:2014-031
    as

    Download full text from publisher

    File URL: http://swopec.hhs.se/hascer/papers/hascer2014-031.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    2. Todaro, Michael P, 1969. "A Model for Labor Migration and Urban Unemployment in Less Developed Countries," American Economic Review, American Economic Association, vol. 59(1), pages 138-148, March.
    3. Kun Li & Changwen Zhao, 2011. "Determinants of Self‐employment in China: Evidence from Cross‐regional Data," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 19(3), pages 49-67, May.
    4. Yamada, Gustavo, 1996. "Urban Informal Employment and Self-Employment in Developing Countries: Theory and Evidence," Economic Development and Cultural Change, University of Chicago Press, vol. 44(2), pages 289-314, January.
    5. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-773, October.
    6. Kam Wing Chan, 2010. "The Household Registration System and Migrant Labor in China: Notes on a Debate," Population and Development Review, The Population Council, Inc., vol. 36(2), pages 357-364, June.
    7. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-1418, December.
    8. YUEH, Linda, 2009. "Self-employment in urban China: Networking in a transition economy," China Economic Review, Elsevier, vol. 20(3), pages 471-484, September.
    9. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
    10. Wang, Xiaobing & Huang, Jikun & Zhang, Linxiu & Rozelle, Scott, 2011. "The rise of migration and the fall of self employment in rural China's labor market," China Economic Review, Elsevier, vol. 22(4), pages 573-584.
    11. Mahmudul Anam & Shin-Hwan Chiang, 2007. "Rural - urban migration of family labor: A portfolio model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(3), pages 325-335.
    12. Barton H. Hamilton, 2000. "Does Entrepreneurship Pay? An Empirical Analysis of the Returns to Self-Employment," Journal of Political Economy, University of Chicago Press, vol. 108(3), pages 604-631, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuting Cao & Ran Liu & Wei Qi & Jin Wen, 2020. "Spatial Heterogeneity of Housing Space Consumption in Urban China: Locals vs. Inter-and Intra-Provincial Migrants," Sustainability, MDPI, Open Access Journal, vol. 12(12), pages 1-1, June.

    More about this item

    Keywords

    Self-employmen; Rural Migrants; Social Network;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:hascer:2014-031. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NanHee Lee). General contact details of provider: http://edirc.repec.org/data/cehhsse.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.