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Migrants and Firms: Evidence from China

Clément Imbert, Marlon Seror, Yifan Zhang () and Yanos Zylberberg

No 7440, CESifo Working Paper Series from CESifo Group Munich

Abstract: This paper estimates the causal effect of rural-urban migration on urban production in China. We use longitudinal data on manufacturing firms between 2001 and 2006 and exploit exogenous variation in rural-urban migration due to agricultural price shocks. Following a migrant inflow, labor costs decline and employment expands. Labor productivity decreases sharply and remains low in the medium run. A quantitative framework suggests that destinations become too labor-abundant and migration mostly benefits low- productivity firms within locations. As migrants select into high-productivity destinations, migration however strongly contributes to the equalization of factor productivity across locations.

Keywords: rural-urban migration; structural transformation; urban production (search for similar items in EconPapers)
JEL-codes: D24 J23 J61 O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-lab, nep-sbm, nep-tra and nep-ure
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

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Working Paper: Migrants and Firms: Evidence from China (2018) Downloads
Working Paper: Migrants and Firms: Evidence from China (2018) Downloads
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