Rural Migration and Sectoral Earning Differences in Urban China

Guifu Chen and Shigeyuki Hamori
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Guifu Chen: Xiamen University

Chapter Chapter 2 in Rural Labor Migration, Discrimination, and the New Dual Labor Market in China, 2014, pp 5-21 from Springer

Abstract: Abstract In this chapter, we first provide a theoretical model by which to analyze the effects of rural migration on wage differentials in the nonagricultural sector. We find that the remunerative disparity between skilled and unskilled labor increases and the average wage decreases as rural migration intensifies. Second, using the dynamic panel data model and data that span a 15-year period (1993–2007) and that cover 29 provinces in China, we discover a fall in the average earnings and rise in the relative earnings ratio of skilled to unskilled workers with an augmentation in the number of rural migrant workers in urban China. Moreover, this chapter shows that the average earnings in five sectors decrease when the number of rural migrant workers in these sectors increases. Finally, we indicate the impact of the upsurge of such workers on average earnings and relative earnings in the eastern, middle, and western regions of the country.

Keywords: Skilled Labor; Wage Differential; Unskilled Worker; Unskilled Labor; Average Earning (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:spbchp:978-3-642-41109-0_2

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DOI: 10.1007/978-3-642-41109-0_2

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