Wage Differentials and Employment Choice of Chinese Rural‐Migrant and Urban‐Resident Workers

18 Pages Posted: 2 Dec 2015

See all articles by Yuling Cui

Yuling Cui

Xi’an University of Technology

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

Date Written: December 2015

Abstract

This article investigates the determinants of the wage rates and the drivers of the decision to be self‐employed for two distinctive groups in the Chinese economy: rural‐migrant and urban‐resident workers. Employing the endogenous switching model, it addresses the issues of selectivity and the endogeneity of wage differentials. Results show that the factors that determine wages and the decision to enter self‐employment are significantly different between the migrant self‐employed, migrant paid‐worker, urbanite self‐employed and urbanite paid‐worker groups. Evidence indicates that a large proportion of workers are not in the type of job in which they could earn the best wage.

Suggested Citation

Cui, Yuling and Nahm, Daehoon and Tani, Massimiliano, Wage Differentials and Employment Choice of Chinese Rural‐Migrant and Urban‐Resident Workers (December 2015). Australian Economic Review, Vol. 48, Issue 4, pp. 382-399, 2015, Available at SSRN: https://ssrn.com/abstract=2697855 or http://dx.doi.org/10.1111/1467-8462.12129

Yuling Cui (Contact Author)

Xi’an University of Technology ( email )

1200 Mailbox, 58 Yanxiang Road
Xi'an, Shaanxi 710054
China

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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