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The retirement migration puzzle in China

Simiao Chen, Zhangfeng Jin () and Klaus Prettner ()

No 03-2020, Hohenheim Discussion Papers in Business, Economics and Social Sciences from University of Hohenheim, Faculty of Business, Economics and Social Sciences

Abstract: We examine whether and how retirement affects migration decisions in China. Using a regression discontinuity (RD) design approach combined with a nationally representative sample of 228,855 adults aged between 40 and 75, we find that retirement increases the probability of migration by 12.9 percentage points. Approximately 38% of the total migration effects can be attributed to inter-temporal substitution (delayed migration). Retirement-induced migrants are lower-educated and have restricted access to social security. Household-level migration decisions can reconcile different migration responses across gender. Retirees migrate for risk sharing and family protection mechnisms, reducing market production of their families in the receiving households.

Keywords: Retirement; Migration decision; Regression discontinuity design (search for similar items in EconPapers)
JEL-codes: J14 J26 J61 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-age, nep-cna, nep-lma, nep-tra and nep-ure
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https://www.econstor.eu/bitstream/10419/215680/1/DP_03_2020_online.pdf (application/pdf)

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Working Paper: The Retirement Migration Puzzle in China (2020) Downloads
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