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Destination homeownership and labor force participation: Evidence from rural-to-urban migrants in China

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  • Huang, Naqun
  • Ning, Guangjie
  • Rong, Zhao

Abstract

China's rapid economic growth is associated with a dramatic flow of migrants from rural to urban areas, some of whom purchase properties in their destination cities. The literature shows that homeownership may reduce owners’ mobility and deteriorate their labor market performance. Using data from the 2016 China Migrants Dynamic Survey (CMDS) and the 2017 China Household Finance Survey (CHFS), we examine the effect of homeownership on labor force participation (LFP). We find that, compared to rental migrants, homeowner migrants, particularly married females, are less likely to participate in the labor force. Mechanism analysis shows that commuting time to potential jobs increases after migrants live in their properties and females are more sensitive to commuting costs because of domestic responsibilities.

Suggested Citation

  • Huang, Naqun & Ning, Guangjie & Rong, Zhao, 2022. "Destination homeownership and labor force participation: Evidence from rural-to-urban migrants in China," Journal of Housing Economics, Elsevier, vol. 55(C).
    • Handle: RePEc:eee:jhouse:v:55:y:2022:i:c:s1051137722000031
    DOI: 10.1016/j.jhe.2022.101827
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    1. Yuzheng Zhang & Shirui He, 2023. "Local Government’s Land Finance Dependence and Migrants’ Settlement Intentions: Evidence from China," Land, MDPI, vol. 12(7), pages 1-16, July.
    2. Guoliang Xu & Xiaonan Yin & Guangdong Wu & Ning Gao, 2022. "Rethinking the Contribution of Land Element to Urban Economic Growth: Evidence from 30 Provinces in China," Land, MDPI, vol. 11(6), pages 1-16, May.
    3. repec:ags:aaea22:335478 is not listed on IDEAS
    4. Wen, Xin & Cheng, Zhiming & Tani, Massimiliano, 2024. "Rural-urban migration, financial literacy, and entrepreneurship," Journal of Business Research, Elsevier, vol. 175(C).
    5. Manyi Luo & Shihu Zhong & Jie Chen, 2024. "The sweet burden: Does homeownership improve the economic status of households?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    6. Mingzhi Hu & Yating Zhang, 2024. "Housing demolition and labour force participation: A gender difference perspective," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 11(1), January.
    7. Zou, Baoling & Chen, Yudan & Mishra, Ashok K. & Hirsch, Stefan, 2024. "Agricultural mechanization and the performance of the local Chinese economy," Food Policy, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    Homeownership; Labor force participation; Migration; China;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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