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Rural Labor Absorption Efficiency in Urban Areas under Different Urbanization Patterns and Industrial Structures: The Case of China

  • Liwen, Chen

    (Renmin University of China)

  • Zeng, Xiangquan


    (Renmin University of China)

  • Yumei, Yang


    (Beijing Forestry University)

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    In this paper, we use Data Envelopment Analysis (DEA) to estimate how well China’s urban areas absorb migrant workers under the interaction of urbanization and industrialization. We applied an output-oriented BCC model to evaluate provincial and regional rural labor absorption efficiency in mainland China. It appears that 4 out of 31 provinces and municipals are efficient, and 2 out of 8 economic regions are efficient in absorbing migrant workers. In the southern and eastern parts of China, urban labor absorption efficiency is higher compared with the western and northern parts of China. Different urbanization patterns and industrial development strategies should be adopted in different economic areas to enhance labor absorption ability in these areas. Urban areas in many parts of China still have potential to accommodate rural migrant workers. The inter-regional flow of production factors would affect urban labor absorption efficiency.

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    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6189.

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    Length: 31 pages
    Date of creation: Dec 2011
    Date of revision:
    Handle: RePEc:iza:izadps:dp6189
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    1. Dipak Mazumdar, 2003. "Trends in employment and the employment elasticity in manufacturing, 1971--92: an international comparison," Cambridge Journal of Economics, Oxford University Press, vol. 27(4), pages 563-582, July.
    2. Davis, James C. & Henderson, J. Vernon, 2003. "Evidence on the political economy of the urbanization process," Journal of Urban Economics, Elsevier, vol. 53(1), pages 98-125, January.
    3. Zhang, Kevin Honglin & Song, Shunfeng, 2003. "Rural-urban migration and urbanization in China: Evidence from time-series and cross-section analyses," China Economic Review, Elsevier, vol. 14(4), pages 386-400.
    4. Agenor, Pierre-Richard, 2001. "Employment effects of stabilization policies," European Journal of Political Economy, Elsevier, vol. 17(4), pages 853-875, November.
    5. Au, Chun-Chung & Henderson, J. Vernon, 2006. "How migration restrictions limit agglomeration and productivity in China," Journal of Development Economics, Elsevier, vol. 80(2), pages 350-388, August.
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