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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Chloé Duvivier: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique
Mary-Françoise Renard: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique
Shi Li: School of Economics and Business Administration - School of Economics and Business Administration - BNU - Beijing Normal University

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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)
Date: 2012-02-24
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00673698
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