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Wage Bargaining Power of Internal Migrant Workers: Evidence from Urban Labor Market in China

Yuhong Du and Hazrul Shahiri

SAGE Open, 2024, vol. 14, issue 2, 21582440241259934

Abstract: This study analyses the wage bargaining power of employers and internal migrant workers in the urban labor market in China using a two-tiered SFA model. The findings indicate that bargaining power decreases the observed wage relative to the benchmark wage which is associated with worker’s actual productivity. The availability of migrant labor is identified to be a key variable in the wage bargaining process. This study reveals that the migrant workers who obtain jobs via informal job search methods stand in a weak bargaining position relative to those using formal search methods which is consistent with limited choices hypothesis. Additionally, the migrant workers in the manufacturing and construction industries or producing and processing occupations extract surplus nearly identical to other groups.

Keywords: urban; labor; migrant; wagen and bargaining (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:14:y:2024:i:2:p:21582440241259934

DOI: 10.1177/21582440241259934

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