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Wage growth through job hopping in China

Author

Listed:
  • Kenn Ariga

    (Institute of Economic Research,Kyoto University)

  • Fumio Ohtake

    (The Institute of Social and Economic Research of Osaka University)

  • Masaru Sasaki

    (The Graduate School of Economics at Osaka University)

  • Zheren Wu

    (Faculty of Economics,Kinki University)

Abstract

This paper uses a unique survey of the Chinese youth to construct a panel data in which we keep track of geographical and job mobilities. Our estimation results deliver the following major findings. (1) The sample individuals are highly mobile. Job quits and relo- cations are frequent and they are closely correlated. We find the job hopping to be highly productive as our estimates indicate each job quit generates more than .2 log increase in monthly wage. .(2) The migrant disadvantage in urban labor market is compensated by their higher job mobility. After four jobs, the expected earnings di¤erentials essentially disappear. We also find that migration and job mobility are highly selective processes. Our evidence indicates that the migrants are positively selected. (3) Job and location mobilities are highly dependent upon family back ground and personal traits which we interpret as representing un- observable characteristics associated with risk taking, active and opti- mistic personality, as well as the implied economic incentives to migrate and keep searching for better jobs.

Suggested Citation

  • Kenn Ariga & Fumio Ohtake & Masaru Sasaki & Zheren Wu, 2012. "Wage growth through job hopping in China," KIER Working Papers 833, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:833
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    References listed on IDEAS

    as
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    3. Kenn Ariga & Masako Kurosawa & Fumio Ohtake & Masaru Sasaki, 2012. "How Do High School Graduates In Japan Compete For Regular, Full-Time Jobs? An Empirical Analysis Based Upon An Internet Survey Of The Youth," The Japanese Economic Review, Japanese Economic Association, vol. 63(3), pages 348-379, September.
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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