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Hukou Matters: The heterogeneous local labor market effects of export expansions in China

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  • Feng, Shuaizhang
  • Lu, Jingliang
  • Shen, Leilei

Abstract

This paper studies the effects of export expansions between 2000 and 2015 on China's local labor markets, focusing on the heterogeneous effects for people with different Hukou statuses. We find that rising local exports increased manufacturing and service-sector employment shares but decreased agricultural employment share for non-local-urban-Hukou residents, including local-rural-Hukou people and cross-prefecture migrants. On the other hand, trade expansions decreased the likelihood of employment and service-sector employment for local-urban-Hukou people. We provide evidence on the substitution and wealth effects for the “crowding-out” of local-urban-Hukou people out of employment.

Suggested Citation

  • Feng, Shuaizhang & Lu, Jingliang & Shen, Leilei, 2024. "Hukou Matters: The heterogeneous local labor market effects of export expansions in China," Journal of Comparative Economics, Elsevier, vol. 52(1), pages 321-340.
    • Handle: RePEc:eee:jcecon:v:52:y:2024:i:1:p:321-340
    DOI: 10.1016/j.jce.2023.11.005
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    More about this item

    Keywords

    Employment structure; Trade expansion; Hukou;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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