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Wage Growth through Job Hopping in China

Author

Listed:
  • Ariga, Kenn

    (Kyoto University)

  • Ohtake, Fumio

    (Osaka University)

  • Sasaki, Masaru

    (Osaka University)

  • Wu, Zheren

    (Kinki University)

Abstract

This paper uses a unique survey of the Chinese youth to construct a panel data in which we keep track of geographical and job mobilities. Our estimation results deliver the following major findings. (1) The sample individuals are highly mobile. Job quits and relocations are frequent and they are closely correlated. We find that job hopping to be highly productive as our estimates indicate each job quit generates more than .2 log increase in monthly wage. (2) The migrant disadvantage in urban labor market is compensated by their higher job mobility. After four jobs, the expected earnings differentials essentially disappear. We also find that migration and job mobility are highly selective processes. Our evidence indicates that the migrants are positively selected. (3) Job and location mobilities are highly dependent upon family back ground and personal traits which we interpret as representing unobservable characteristics associated with risk taking, active and optimistic personality, as well as the implied economic incentives to migrate and keep searching for better jobs.

Suggested Citation

  • Ariga, Kenn & Ohtake, Fumio & Sasaki, Masaru & Wu, Zheren, 2012. "Wage Growth through Job Hopping in China," IZA Discussion Papers 7104, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7104
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    References listed on IDEAS

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    1. Knight, John & Yueh, Linda, 2004. "Job mobility of residents and migrants in urban China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 637-660, December.
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    3. Kenn Ariga & Masako Kurosawa & Fumio Ohtake & Masaru Sasaki, 2012. "How Do High School Graduates In Japan Compete For Regular, Full-Time Jobs? An Empirical Analysis Based Upon An Internet Survey Of The Youth," The Japanese Economic Review, Japanese Economic Association, vol. 63(3), pages 348-379, September.
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    6. Gagnon, Jason & Xenogiani, Theodora & Xing, Chunbing, 2009. "Are all migrants really worse off in urban labour markets: new empirical evidence from China," MPRA Paper 16109, University Library of Munich, Germany.
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    9. Lehmer, Florian & Ludsteck, Johannes, 2008. "The returns to job mobility and inter-regional migration," IAB-Discussion Paper 200806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    More about this item

    Keywords

    wage growth; migration; school to work transition;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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