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Income Differential and Out-migration: the Impacts of Between-gap and Within-gap

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  • Zhongmin Wu
  • Yu Zhu

Abstract

In this paper, we use pooled cross-sectional data on 28 provinces to study out-migration in China. In particular, we estimate inter- and intra-province rural-to-urban migration in a simultaneous-equations model. Allowing for the joint determination of inter- and intra-migration, we find the effect of the within province rural-urban income gap on intra-province migration to be almost three times as strong as that of the between province urban wage gap on inter-province migration.

Suggested Citation

  • Zhongmin Wu & Yu Zhu, 2004. "Income Differential and Out-migration: the Impacts of Between-gap and Within-gap," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(1), pages 27-37.
    • Handle: RePEc:taf:jocebs:v:2:y:2004:i:1:p:27-37
    DOI: 10.1080/14765280310001631363
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    References listed on IDEAS

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    1. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    2. George J. Borjas, 2021. "Self-Selection and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 4, pages 69-91, World Scientific Publishing Co. Pte. Ltd..
    3. Knight, John & Song, Lina, 1999. "Employment Constraints and Sub-optimality in Chinese Enterprises," Oxford Economic Papers, Oxford University Press, vol. 51(2), pages 284-299, April.
    4. Bhattacharya, Prabir C, 1993. "Rural-Urban Migration in Economic Development," Journal of Economic Surveys, Wiley Blackwell, vol. 7(3), pages 243-281, September.
    5. J. R. Hicks, 1963. "The Theory of Wages," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-00189-7, March.
    6. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
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    Cited by:

    1. Yu Zhu & Zhongmin Wu & Meiyan Wang & Yang Du & Fang Cai, 2011. "Do Migrants Really Save More? Understanding the Impact of Remittances on Savings in Rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 654-672, June.

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    More about this item

    Keywords

    Out-migration; income differential; China; JEL classifications: R23; I61;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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