Urbanisation and Migration Externalities in China

Pierre-Philippe Combes, Démurger, Sylvie and Shi Li ()
Authors registered in the RePEc Author Service: Sylvie Démurger

No 9352, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We evaluate the role that cities play on individual productivity in China. First, we show that location explains a large share of nominal wage disparities. Second, even after controlling for individual and firms characteristics and instrumenting city characteristics, the estimated elasticity of wage with respect to employment density is about three times larger than in Western countries. Land area and industrial specialisation also play a significant role whereas the access to external markets does not. Therefore, large agglomeration economies prevail in China and they are more localised than in Western countries. Third, we find evidence of a large positive impact of the local share of migrants on local workers' wages. Overall, these results strongly support the productivity gains that can be expected from further migration and urbanisation in China.

Keywords: Agglomeration economies; China; Migration; Urban development; Wage disparities (search for similar items in EconPapers)
JEL-codes: J31 O18 O53 R12 R23 (search for similar items in EconPapers)
Date: 2013-02
New Economics Papers: this item is included in nep-dev, nep-geo, nep-lab, nep-mig, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Working Paper: Urbanisation and Migration Externalities in China (2013)
Working Paper: Urbanisation and Migration Externalities in China (2013)
Working Paper: Urbanisation and Migration Externalities in China (2013)
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