Location Preference in Migration Decision: Evidence from 2013 China Household Finance Survey

Jingjing Ye and Xiaokai Wu

Chinese Economy, 2016, vol. 49, issue 5, 359-373

Abstract: In the presence of rapid urbanization, labor flow from urban to urban areas has become more prevalent in contemporary China. Understanding the group of urban to urban migrants is a crucial step to develop an efficient policy for sustainable economic growth in the ensuing decades. This article investigates the individual migration decision and preference for metropolitan areas in urban China. Compared to eastern China residents, individuals from interior areas have a significantly higher propensity to migrate, even after controlling for the income and welfare level of their home provinces. However, urban interprovincial migrants have reduced their moving propensity to mega cities, such as Beijing and Shanghai, by 11 percent within the most recent five years. Our finding suggests that central China is experiencing a massive out-migration and is encountering a high risk of high-skill labor loss.

Date: 2016
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DOI: 10.1080/10971475.2016.1193390

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