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Promoting or preventing labor migration? Revisiting the role of language

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  • Liu, Yuyun
  • Jiao, Yang
  • Xu, Xianxiang

Abstract

Large migration inflows increase the linguistic and cultural diversity of the place of destination, which facilitates the universal interchange of ideas and contributes to economic growth. However, the impact of language on migration is under-researched in developing countries. In this paper, we address this question in the context of China based on micro-level data and find a robust inverted U-shaped relationship between the probability of migration and the dialect distance between one's place of origin and the destination. Our identification strategy carefully addressed the selection bias and investigated different channels through which language affects the decision to migrate through imposing communication barriers, establishing social identity, and enhancing the exchange of skills. The results suggest that migration costs are mainly due to the difficulties of social integration, and the communication costs are small because of the wide use of standard Putonghua in China. In contrast, the benefits of migration increase when individuals move to a more linguistically distant place.

Suggested Citation

  • Liu, Yuyun & Jiao, Yang & Xu, Xianxiang, 2020. "Promoting or preventing labor migration? Revisiting the role of language," China Economic Review, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:chieco:v:60:y:2020:i:c:s1043951x20300043
    DOI: 10.1016/j.chieco.2020.101407
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    4. Huaxin Wang-Lu & Octasiano Miguel Valerio Mendoza, 2022. "Job Prospects and Labour Mobility in China," Papers 2207.08282, arXiv.org, revised Sep 2022.
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    6. Thomas Vendryes & Jiaqi Zhan, 2023. "Hukou-Based Discrimination, Dialects and City Characteristics," Documents de recherche 23-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    7. Yang Yang, 2023. "Hukou Identity and Economic Behaviours: A Social Identity Perspective," Erudite Ph.D Dissertations, Erudite, number ph23-02 edited by Catherine Bros & Julie Lochard.
    8. Jiao, Yang & Shen, Leilei & Liu, Yuyun, 2023. "Melting pot or salad bowl: Cultural effects on industrial similarity during trade liberalization," Journal of Comparative Economics, Elsevier, vol. 51(1), pages 235-258.
    9. Wang, Ling & Ruan, Jianqing, 2024. "Cultural diversity, social network, and off-farm employment: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 89(PB), pages 581-596.
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