The Determinants of Rural Migrants' Employment Choice in China: Results from a Joint Estimation
This paper investigates the determinants of employment choice of rural migrant workers across state-owned enterprises (SOEs) and various subtypes of non-state owned enterprises (non-SOEs) by taking into account unobservable characteristics that link the choice to migrate with the choice of employer. Using pooled cross-section data for 1995 and 2002, the results indicate that the choice of employment is positively related to unobserved determinants of migration. This result implies that estimating employment choices without controlling for migration status leads to biased estimates. Most rural migrants appear strongly pulled into non-SOEs because of the higher wages and despite longer working hours. The provision of pension benefits also positively motivates employees' choices.
|Date of creation:||Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
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.:
- Arjun Bedi, 1998. "Sector choice, multiple job holding and wage differentials: Evidence from Poland," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 162-179.
- Saul D. Hoffman & Greg J. Duncan, 1988. "A Comparison of Choice-Based Multinomial and Nested Logit Models: The Family Structure and Welfare Use Decisions of Divorced or Separated Women," Journal of Human Resources, University of Wisconsin Press, vol. 23(4), pages 550-562.
- Adamchik, Vera A. & Bedi, Arjun S., 2000. "Wage differentials between the public and the private sectors: evidence from an economy in transition," Labour Economics, Elsevier, vol. 7(2), pages 203-224, March.
- Zhu, Nong, 2002. "The impacts of income gaps on migration decisions in China," China Economic Review, Elsevier, vol. 13(2-3), pages 213-230.
- Zhang, Xiaobo & Li, Guo, 2003.
"Does guanxi matter to nonfarm employment?,"
Journal of Comparative Economics,
Elsevier, vol. 31(2), pages 315-331, June.
- W. Shaw & Michael Ozog, 1999. "Modeling Overnight Recreation Trip Choice: Application of a Repeated Nested Multinomial Logit Model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 13(4), pages 397-414, June.
- 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.
- 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, 2009. "Are all migrants really worse off in urban labour markets: new empirical evidence from China," MPRA Paper 16109, University Library of Munich, Germany.
- Mallar, Charles D, 1977. "The Estimation of Simultaneous Probability Models," Econometrica, Econometric Society, vol. 45(7), pages 1717-22, October.
- Seeborg, Michael C. & Jin, Zhenhu & Zhu, Yiping, 2000. "The new rural-urban labor mobility in China: Causes and implications," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(1), pages 39-56.
- Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
- Corrado Giulietti & Guangjie Ning & Klaus F. Zimmermann, 2012.
"Self-employment of rural-to-urban migrants in China,"
International Journal of Manpower,
Emerald Group Publishing, vol. 33(1), pages 96-117, June.
- Giulietti, Corrado & Ning, Guangjie & Zimmermann, Klaus F, 2011. "Self-employment of rural-to-urban migrants in China," CEPR Discussion Papers 8473, C.E.P.R. Discussion Papers.
- Giulietti, Corrado & Ning, Guangjie & Zimmermann, Klaus F., 2011. "Self-Employment of Rural-to-Urban Migrants in China," IZA Discussion Papers 5805, Institute for the Study of Labor (IZA).
- Sylvie Démurger & Marc Gurgand & Li Shi & Yu Ximing, 2008.
"Migrants as second-class workers in urban China? A decomposition analysis,"
0808, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
- Démurger, Sylvie & Gurgand, Marc & Li, Shi & Yue, Ximing, 2009. "Migrants as second-class workers in urban China? A decomposition analysis," Journal of Comparative Economics, Elsevier, vol. 37(4), pages 610-628, December.
- Sylvie Démurger & Marc Gurgand & Shi Li & Yue Ximing, 2008. "Migrants as second-class workers in urban China? A decomposition analysis," Post-Print halshs-00269119, HAL.
- Dong, Keyong & Ye, Xiangfeng, 2003. "Social security system reform in China," China Economic Review, Elsevier, vol. 14(4), pages 417-425.
- Zhao, Yaohui, 2001. "Foreign direct investment and relative wages: The case of China," China Economic Review, Elsevier, vol. 12(1), pages 40-57.
- Lu, Zhigang & Song, Shunfeng, 2006. "Rural-urban migration and wage determination: The case of Tianjin, China," China Economic Review, Elsevier, vol. 17(3), pages 337-345.
- Knight, John & Li, Shi, 2005. "Wages, firm profitability and labor market segmentation in urban China," China Economic Review, Elsevier, vol. 16(3), pages 205-228.
- John Knight & Lina Song & Jia Huaibin, 1999.
"Chinese rural migrants in urban enterprises: Three perspectives,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 35(3), pages 73-104.
- Knight, J & Song, L & Huaibin, J, 1997. "Chinese Rural Migrants in Urban Enterprises : Three Perspectives," Economics Series Working Papers 99190, University of Oxford, Department of Economics.
- Linda Y. Yueh, 2004. "Wage Reforms in China During the 1990s," Asian Economic Journal, East Asian Economic Association, vol. 18(2), pages 149-164, 06.
- 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).
- Du, Yang & Park, Albert & Wang, Sangui, 2005. "Migration and rural poverty in China," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 688-709, December.
- Florian Heiss, 2002. "Structural choice analysis with nested logit models," Stata Journal, StataCorp LP, vol. 2(3), pages 227-252, August.
- Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
- Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
- Dong, Xiao-yuan & Bowles, Paul, 2002. "Segmentation and discrimination in China's emerging industrial labor market," China Economic Review, Elsevier, vol. 13(2-3), pages 170-196.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6968. 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: (Mark Fallak)
If references are entirely missing, you can add them using this form.