An Empirical Analysis of Employment Stability and the Wage Gap of Rural Migrants in China Based on Quantile Regression

Under the background of accelerated integrated urban-rural development, this paper offers an analysis on the short-term employment of rural migrants in China and resulting wage gap between long-term and short-term rural migrants. On the basis of correcting for sample selection problems arising from...

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Bibliographic Details
Published in:China economist (Beijing, China) China), 2013-11, Vol.8 (6), p.98-111
Main Authors: Baihui, Liu, Enhui, Kou
Format: Article
Language:English
Subjects:
Decomposition
Employees
Employment
Human capital
Income distribution
Labor contracts
Labor market
Migrant workers
Parameter estimation
Participation
Variables
Wage differential
Wages & salaries
中国
农民工工资
分位数回归
劳动力市场
实证分析
就业
差距
稳定性
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Summary:Under the background of accelerated integrated urban-rural development, this paper offers an analysis on the short-term employment of rural migrants in China and resulting wage gap between long-term and short-term rural migrants. On the basis of correcting for sample selection problems arising from labor market participation and short-term employment, rural migrants＇ wage function is estimated using quantile regression method, and wage gap between long-term and short-term rural migrants is decomposed using MM method. Our empirical results suggest that those with a higher level of education, training experience and local employment recommended by family relations or in formal labor market are more likely to secure long-term labor contract,＂ region and education have significant contributions to the wage of rural migrants,＂ rural migrants of both long- and short-term contract types have great gaps at the bottom of salary distribution; and there exists a sticky floor effect in wage difference of rural migrants. These results have important policy implications in enhancing employment stability of rural migrants, improving income distribution equity, speeding up the process of urbanization, and balancing regional development.
ISSN:1673-8837