Liquidity Constraint Shock, Job Search and Post Match Quality—Evidence from Rural-to-Urban Migrants in China

Yuanyuan Chen () and Zichen Deng
Additional contact information
Yuanyuan Chen: Shanghai University of Finance and Economics
Zichen Deng: Vrije Universiteit Amsterdam

Journal of Labor Research, 2019, vol. 40, issue 3, No 4, 332-355

Abstract: Abstract This paper studies the impact of a liquidity constraint shock on the job search behavior and outcomes among rural-to-urban migrant workers in China. A negative liquidity constraint shock significantly reduces job search duration and increases the job finding hazard rate for female migrant workers. A negative liquidity constraint shock also lowers the subsequent job match quality, including a lower hourly wage, longer working hours, a higher probability of on-the-job searches and lower quality in terms of subsidy. We find little effect on the job search process and post match quality for male migrant workers. From the policy perspective, we show evidence that rural medical insurance, namely, the New Cooperative Medical Scheme (NCMS), can actually ease the impact of a liquidity constraint shock for female migrant workers.

Keywords: Liquidity constraint shock; Job search duration; Match quality; On-the-job-searches; Rural-to-urban migrants (search for similar items in EconPapers)
JEL-codes: J31 J64 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s12122-018-9278-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:jlabre:v:40:y:2019:i:3:d:10.1007_s12122-018-9278-7

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/12122

DOI: 10.1007/s12122-018-9278-7

Access Statistics for this article

Journal of Labor Research is currently edited by Ozkan Eren

More articles in Journal of Labor Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().