Wage growth through job hopping in China

Kenn Ariga, Fumio Ohtake, Masaru Sasaki () and Zheren Wu
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Kenn Ariga: Institute of Economic Research,Kyoto University
Zheren Wu: Faculty of Economics,Kinki University

No 833, KIER Working Papers from Kyoto University, Institute of Economic Research

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.

JEL-codes: J31 J61 J62 (search for similar items in EconPapers)
Pages: 60pages
Date: 2012-11
New Economics Papers: this item is included in nep-dev, nep-lab, nep-lma, nep-mig, nep-tra and nep-ure
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Working Paper: Wage Growth through Job Hopping in China (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:833

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