Economics

The impact of labor mobility with fellow townsmen on the wages of rural migrants: evidence from China

F. Meng, Z. Liu, et al.

Discover how labor mobility among rural migrants in China boosts wages through improved job search and negotiation skills. This compelling research, conducted by Fanqiang Meng, Zhihui Liu, Hao Lin, and Miraj Ahmed Bhuiyan, reveals intriguing insights into the dynamics of migration and employment.

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Abstract

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.

Publisher

Humanities & Social Sciences Communications

Published On

Jul 05, 2023

Authors

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

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