Migration, Remittances and Rural Employment Patterns: Evidence from China
GATE Working Paper No. 1230
33 Pages Posted: 26 Oct 2012 Last revised: 14 Feb 2013
Date Written: October 23, 2012
This paper explores the rural labor market impact of migration in China using cross-sectional data on rural households for the year 2007. A switching probit model is used to estimate the impact of belonging to a migrant-sending household on the individual occupational choice categorized in four binary decisions: farm work, wage work, self-employment and housework. The paper then goes on to estimate how the impact of migration differs across different types of migrant households identified along two additional lines: remittances and migration history. Results show that individual occupational choice in rural China is responsive to migration, at both the individual and the family levels, but the impacts differ: individual migration experience favors subsequent local off-farm work, whereas at the family level, migration drives the left-behinds to farming rather than to off-farm activities. Our results also point to the interplay of various channels through which migration influences rural employment patterns.
Keywords: labor migration, labor supply, remittances, temporary migration, left-behind, China
JEL Classification: O15, J22, R23, D13, O53
Suggested Citation: Suggested Citation