The labor market outcomes of jurisdictional consolidation: Evidence from city–county mergers in China

Shiyu Bo and Yi Wang

Journal of Urban Economics, 2025, vol. 149, issue C

Abstract: In this paper, we examine the labor market outcomes of jurisdictional consolidation, focusing on the effect of city–county mergers in China between 2011 and 2018 on the wages of migrant workers and local residents. Under the merger reform, city districts were consolidated with nearby counties, expanding the jurisdiction under the centralized control of the prefecture government. Using a staggered difference-in-differences approach, we find that wages increased by 3.1% for migrant workers and 10.4% for local residents in consolidated jurisdictions. We attribute these effects to local economic growth and the resulting differentiated labor demand for migrant and local workers.

Keywords: Size of jurisdictions; Consolidation; Labor market; Migrant workers; China (search for similar items in EconPapers)
JEL-codes: H11 H77 J31 J61 R23 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:149:y:2025:i:c:s0094119025000531

DOI: 10.1016/j.jue.2025.103788

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