This paper explores the impact of labor mobility on the wages of rural migrants in China when they move with fellow townsmen. Using the China Migrants Dynamic Survey (CMDS) data and propensity score matching (PSM), the study finds that such mobility significantly increases migrant wages. Two mechanisms are identified: improved information search and enhanced wage negotiation abilities. Heterogeneity analysis reveals that the positive impact is more pronounced in specific occupations, enterprise types, and for older migrants. However, migrants moving with family members may prioritize job stability over higher wages.

Fanqiang Meng, Zhihui Liu, Hao Lin, Miraj Ahmed Bhuiyan