Employment and Earnings of Low-Income Residents in Urban China

Sankar Mukhopadhyay, Shunfeng Song and Erqian Zhu

Chinese Economy, 2011, vol. 44, issue 1, 6-17

Abstract: A recent data set from the city of Changsha is used to estimate the impact of social support programs on employment for low-income urban workers in China. The Chinese urban household registration system >i>(hukou),>/i> which determines whether an individual is eligible for social support programs, allows us to identify the effect of social support programs using an instrumental variable setting. It is found that the probability of employment is reduced by about 35 percent for those who rely on social support programs. The determinants of labor income for low-income workers are also examined.

Date: 2011
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