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

34 Pages Posted: 3 Nov 2012

See all articles by Daehoon Nahm

Daehoon Nahm

Macquarie University - Department of Economics; Macquarie University, Macquarie Business School

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy; IZA Institute of Labor Economics

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: rural migrant workers, employment choice, SOEs, non-SOEs, China

JEL Classification: C35, J21, J61

Suggested Citation

Nahm, Daehoon and Tani, Massimiliano, The Determinants of Rural Migrants' Employment Choice in China: Results from a Joint Estimation. IZA Discussion Paper No. 6968, Available at SSRN: https://ssrn.com/abstract=2170656

Daehoon Nahm

Macquarie University - Department of Economics ( email )

Sydney NSW 2109
Australia

Macquarie University, Macquarie Business School ( email )

New South Wales 2109
Australia

Massimiliano Tani

University of New South Wales - Australian Defence Force Academy ( email )

Sydney, NSW 2052
Australia
+612 6268 8512 (Phone)
+612 6248 8450 (Fax)

HOME PAGE: http://www.unsw.adfa.edu.au/sbus/staff_cvs/about_max_t.html

IZA Institute of Labor Economics

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Bonn, D-53072
Germany

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