The effects of state-led relocation on labor market participation: Evidence from China

Zhengyi Zhou

China Economic Review, 2022, vol. 73, issue C

Abstract: The urbanization of China has been accompanied by large-scale state-led relocation (SLR) programs. This paper studies the effects of urban SLR on labor market participation. With three waves of China Household Finance Survey (CHFS), we find that urban SLR reduces labor market participation, on both the extensive margin and the intensive margin. The reduction is stronger for females, and there is some substitute effect between husbands and wives. The reduction is also stronger for individuals who are elder and less educated, and who choose lump sums of monetary compensation. Finally, we find no evidence that urban SLR experience stimulates business creation.

Keywords: Relocation; Compensation; Urban; House; Labor market participation (search for similar items in EconPapers)
JEL-codes: J22 P25 R23 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:73:y:2022:i:c:s1043951x21001243

DOI: 10.1016/j.chieco.2021.101706

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