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Labour market outcomes and migration: evidence from China

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  • Xiao Huang
  • Pengfei Sheng
  • Ailun Shui

Abstract

Migrants enter the labour market as self-employed with employees (as employers), self-employment without employees (as own-account workers), and paid-employment (as salaried employees). This study examines whether self-employment has higher earnings than the paid-employment for China’s migrants. Analysing a data set from the 2016 China Migrants Dynamic Survey, our results suggest that employers have the highest earnings potential on average, followed by own-account workers, and paid-employment. Moreover, marginal returns increase for an employer in higher-income quantiles. Thus, this study concludes that the rich are self-employed with higher returns, while the poor view it as a substitute for unemployment.

Suggested Citation

  • Xiao Huang & Pengfei Sheng & Ailun Shui, 2020. "Labour market outcomes and migration: evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 27(19), pages 1596-1601, November.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:19:p:1596-1601
    DOI: 10.1080/13504851.2019.1705236
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    Cited by:

    1. Xinxin Ma, 2023. "Internet usage and the income gap between self‐employed individuals and employees: Evidence from China," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1509-1536, August.

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