Relative Income Positions and Labor Migration: A Panel Study Based on a Rural Household Survey in China

Zheren Wu ()
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Zheren Wu: Osaka School of International Public Policy, Osaka University

No 08-24, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: Migration may be used as a strategy to improve a household fs comparative income position in residential areas. Previous studies have found empirical evidence that relative incomes affect emigration decisions. However, no effect is detected for internal migration. In this paper, we reexamine the effect of relative income positions on internal migration behavior. Based on data from a rural household panel survey of the Sichuan and Anhui provinces in China, we find that motives based on relative income play an important role in households f migration decisions. When all else is equal, a household that is poor relative to its home village reference group is more likely to increase migration than is a household in the upper end of the village income distribution. This effect is particularly apparent in households with pioneer migrants. The empirical results also indicate that pioneer migrants may confer a positive externality on potential future migrants. Workers belonging to households with pioneers might be less impeded by migration risks and costs and may be more likely to view migration (an increase in the number of migrants) as an effective strategy for improving their relative economic positions.

Keywords: Migration; Relative income position; Pioneer migrants (search for similar items in EconPapers)
JEL-codes: J24 O15 R23 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2008-06
New Economics Papers: this item is included in nep-cna, nep-dev, nep-mig and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:0824

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