Labor Mobility, Marketization and Urban Income Change: Potential Rural-Urban Harmonization or Not

Kunrong Shen (), Jixiang Yu () and Jian Li ()
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Kunrong Shen: School of Economics, Nanjing University, Nanjing 210093, China
Jixiang Yu: Economy and Trade Department, Anhui Science and Technology University, Fengyang 233100, China
Jian Li: School of Economics, Nanjing University, Nanjing 210093, China

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2011, vol. 6, issue 3, 447-463

Abstract: Previous literature omitted marketization process, a distinct phenomenon in transitional China, when the relationship between immigrants and indigenous urban income is investigated. We find that (1) marketization is a key factor of rural-urban harmonization; (2) segmentation of labor market has no real effect on urban income change since it may be evaded partly by rural labor; (3) the key determinants of urban income change are the cross effect between marketization and mobility, openness, and government spending; and (4) the marginal effect of immigrants is positive in some regions although it is averagely negative during the sample period. Rural-urban harmonization is totally possible if marketization process continues.

Keywords: labor mobility; urban income; marketization; segmentation; rural- urban harmonization (search for similar items in EconPapers)
JEL-codes: F22 J31 J61 R0 (search for similar items in EconPapers)
Date: 2011
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