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The Determinants of Rural Migrants' Employment Choice in China: Results from a Joint Estimation

Yuling Cui (), Daehoon Nahm () and Max Tani
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Yuling Cui: Macquarie University, Sydney
Daehoon Nahm: Macquarie University, Sydney

No 6968, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the determinants of employment choice of rural migrant workers across state-owned enterprises (SOEs) and various subtypes of non-state owned enterprises (non-SOEs) by taking into account unobservable characteristics that link the choice to migrate with the choice of employer. Using pooled cross-section data for 1995 and 2002, the results indicate that the choice of employment is positively related to unobserved determinants of migration. This result implies that estimating employment choices without controlling for migration status leads to biased estimates. Most rural migrants appear strongly pulled into non-SOEs because of the higher wages and despite longer working hours. The provision of pension benefits also positively motivates employees' choices.

Keywords: SOEs; employment choice; rural migrant workers; non-SOEs; China (search for similar items in EconPapers)
JEL-codes: C35 J21 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-lab, nep-mig and nep-tra
Date: 2012-10
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