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Are workers close to cities paid higher non-agricultural wages in rural China?

Chloé Duvivier (), Mary-Françoise Renard () and Shi Li ()
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Mary-Françoise Renard: Centre d'Etudes et de Recherches sur le Développement International(CERDI)

No 201205, Working Papers from CERDI

Abstract: In the present study, we investigate whether workers close to cities are paid higher non-agricultural wages than workers in outlying rural areas. We find that workers close to urban areas not only benefit from more opportunities to engage in non-agricultural activities, but also from better paid jobs. In addition, distance exhibits a strongly nonlinear impact. Distance always has a negative impact on wages but the effect is more detrimental, the closer the village is to the urban center. We also find evidence of urban hierarchy effects: workers living close to bigger cities are paid higher wages. Finally, we provide evidence on the transmission channels at work.

Keywords: Remoteness; Regional labor market; China Codes; Wages (search for similar items in EconPapers)
JEL-codes: J31 O53 R10 R23 (search for similar items in EconPapers)
Pages: 28
Date: 2012
New Economics Papers: this item is included in nep-lma
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Journal Article: Are workers close to cities paid higher nonagricultural wages in rural China? (2013) Downloads
Working Paper: Are workers close to cities paid higher nonagricultural wages in rural China? (2013)
Working Paper: Are workers close to cities paid higher non-agricultural wages in rural China? (2012) Downloads
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