Do Public Work Schemes Deter or Encourage Outmigration? Empirical Evidence from China

38 Pages Posted: 20 Jan 2012

See all articles by Nancy H. Chau

Nancy H. Chau

Cornell University - School of Applied Economics and Management; IZA Institute of Labor Economics

Ravi Kanbur

Cornell University; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Yu Qin

National University of Singapore (NUS) - Department of Real Estate

Date Written: January 2012

Abstract

How does the introduction of rural public work schemes impact individual incentives to migrate? This paper examines this question in the context of rural public work program (Yigong-daizhen) in China, and unveils empirical evidence that suggest that the introduction of Yigong-daizhen projects in fact stimulates outmigration at the village level, after controlling for village characteristics and project types. By furthermore accounting for the endogeneity of Yigong-daizhen placement, the impact of such projects is found to be even larger. These results are consistent with household migration behavior in the presence of significant cost of migration, and credit market imperfection.

Keywords: Outmigration, Public Works Schemes, Rural China

JEL Classification: H53, J43, O15

Suggested Citation

Chau, Nancy H. and Kanbur, Ravi and Qin, Yu, Do Public Work Schemes Deter or Encourage Outmigration? Empirical Evidence from China (January 2012). CEPR Discussion Paper No. DP8778. Available at SSRN: https://ssrn.com/abstract=1988709

Nancy H. Chau (Contact Author)

Cornell University - School of Applied Economics and Management ( email )

Ithaca, NY 14853
United States
607-255-4463 (Phone)
607-255-9984 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ravi Kanbur

Cornell University ( email )

301-J Warren Hall
Ithaca, NY 14853
United States
607-255-7966 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://www.kanbur.dyson.cornell.edu

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Yu Qin

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

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