Labour market outcomes and migration: evidence from China

Xiao Huang, Pengfei Sheng and Ailun Shui

Applied Economics Letters, 2020, vol. 27, issue 19, 1596-1601

Abstract: Migrants enter the labour market as self-employed with employees (as employers), self-employment without employees (as own-account workers), and paid-employment (as salaried employees). This study examines whether self-employment has higher earnings than the paid-employment for China’s migrants. Analysing a data set from the 2016 China Migrants Dynamic Survey, our results suggest that employers have the highest earnings potential on average, followed by own-account workers, and paid-employment. Moreover, marginal returns increase for an employer in higher-income quantiles. Thus, this study concludes that the rich are self-employed with higher returns, while the poor view it as a substitute for unemployment.

Date: 2020
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DOI: 10.1080/13504851.2019.1705236

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