Informal Search, Bad Search? The Effects of Job Search Method on Wages Among Rural Migrants in Urban China PDF Download
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Author: Yuanyuan Chen Publisher: ISBN: Category : Languages : en Pages : 52
Book Description
The use of informal job search method is prevalent in many countries. There is, however, no consensus in the literature on whether it actually matters for wages, and if it does, what are the underlying mechanisms. We empirically examine these issues specifically for rural migrants in urban China, a country where one of the largest domestic migration in human history has occurred over the past decades. We find that there exists a significant wage penalty for those migrant workers who have conducted their search through informal channels, despite their popularity. Our further analysis suggests two potential reasons for the wage penalty: 1) the informal job search sends a negative signal (of workers' inability to successfully find a job in a competitive market) to potential employers, resulting in lower wages; and 2) there exists a trade-off between wages and search efficiency for quicker entry into local labor market. We also find some evidence that the informal job search may lead to low-skilled jobs with lower wages. We do not find strong evidence supporting alternative explanations.
Author: Yuanyuan Chen Publisher: ISBN: Category : Languages : en Pages : 52
Book Description
The use of informal job search method is prevalent in many countries. There is, however, no consensus in the literature on whether it actually matters for wages, and if it does, what are the underlying mechanisms. We empirically examine these issues specifically for rural migrants in urban China, a country where one of the largest domestic migration in human history has occurred over the past decades. We find that there exists a significant wage penalty for those migrant workers who have conducted their search through informal channels, despite their popularity. Our further analysis suggests two potential reasons for the wage penalty: 1) the informal job search sends a negative signal (of workers' inability to successfully find a job in a competitive market) to potential employers, resulting in lower wages; and 2) there exists a trade-off between wages and search efficiency for quicker entry into local labor market. We also find some evidence that the informal job search may lead to low-skilled jobs with lower wages. We do not find strong evidence supporting alternative explanations.
Author: Wenjin Long Publisher: ISBN: Category : Languages : en Pages : 34
Book Description
In nationally representative household data from the 2008 wave of the Rural to Urban Migration in China survey, nearly two thirds of rural-urban migrants found their employment through family members, relatives, friends or acquaintances. This paper investigates why the use of social network to find jobs is so prevalent among rural-urban migrants in China, and whether migrants face a wage penalty as a result of adopting this job search method. We find evidence of positive selection effects of the use of networks on wages. Users of networks tend to be older, to have migrated longer ago and to be less educated. In addition, married workers and those from villages with more out-migrant are more likely to use networks, while those without local residential registration status are less likely. Controlling for selectivity, we find a large negative impact of network use on wages. Using job contacts brings open access to urban employment, but at the cost of markedly lower wages.
Author: Fulong Wu Publisher: Routledge ISBN: 1135095345 Category : Social Science Languages : en Pages : 367
Book Description
After millions of migrants moved from China’s countryside into its sprawling cities a unique kind of ‘informal’ urban enclave was born – ‘villages in the city’. Like the shanties and favelas before them elsewhere, there has been huge pressure to redevelop these blemishes to the urban face of China’s economic vision. Unlike most developing countries, however, these are not squatter settlements but owner-occupied settlements developed semi-formally by ex-farmers turned small-developers and landlords who rent shockingly high-density rooms to rural migrants, who can outnumber their landlord villagers. A strong state, matched with well-organised landlords collectively represented through joint-stock companies, has meant that it has been relatively easy to grow the city through demolition of these soft migrant enclaves. The lives of the displaced migrants then enter a transient phase from an informal to a formal urbanity. This book looks at migrants and their enclave ‘villages in the city’ and reveals the characteristics and changes in migrants’ livelihoods and living places. Using an interdisciplinary approach, the book analyses how living in the city transforms and changes rural migrant households, and explores the social lives and micro economies of migrant neighbourhoods. It goes on to discuss changing housing and social conditions and spatial changes in the urban villages of major Chinese cities, as well as looking into transient urbanism and examining the consequences of redevelopment and upgrading of the ‘villages in the city’; in particular, the planning, regeneration, politics of development, and socio-economic implications of these immense social, economic and physical upheavals.
Author: Tony Fang Publisher: ISBN: Category : Languages : en Pages : 30
Book Description
Job search procedures are a form of human capital investment in that they involve current investments to enhance future returns, analogous to human capital investments in areas such as education, training and mobility that yield future returns. While the theoretical and empirical literature on job search is extensive, most of it involves developed countries. There is less on developing countries and very little on China involving migrant workers in spite of their growing practical and policy importance and the fact that they are constantly engaging in job search.This paper examines the use and impact of job search procedures used by migrant workers in China by taking advantage of a rich data set on migrant workers that has information on their job search procedure as well as a wide array of other personal and human capital characteristics. Our OLS estimates indicate that there is no effect on earnings of using informal versus formal job search procedures for migrant workers in China.However, our IV results suggest that the OLS estimates are subject to severe selection bias from the fact that the choice of job search procedure is endogenous, associated with unobservable factors that affect the choice of informal versus formal procedures and that affect the earnings outcome. Our three different IV estimates designed to deal with this bias indicate that informal procedures (various aspects of family and friends) are associated with earnings that are 33 to 43 percent below the uses of more formal procedures. The decomposition results indicate that the most important variable contributing to pay advantage of those who use formal as opposed to informal procedures is education. In sum, our results suggest that policies to encourage or facilitate migrant workers using more formal job search procedures and reducing barriers that compel them to rely on informal procedures can yield better job matches with higher earnings.
Author: Guifu Chen Publisher: Springer Science & Business Media ISBN: 3642411096 Category : Business & Economics Languages : en Pages : 122
Book Description
This book studies some important issues in China’s labor market, such as rural labor migration, employment and wage discrimination, the new dual labor market, and economic returns on schooling, using the newer and representative data and advanced estimation models. This approach has yielded many interesting results, including a solution to the dilemma of two ongoing crises since 2004: the rural labor surplus and severe shortage of migrant labor. While male workers generally received less favorable treatment and consequently enjoyed a lower average employment probability than female workers in 1996, they also received preferential treatment over female workers, who otherwise had identical worker characteristics in 2005. We provide new estimates for male-female hourly wage differentials in urban China, and our results indicate that the hourly wage differentials and the unexplained part of the hourly wage differentials are smaller than the differentials obtained by ignoring the sample selection bias. We study China’s new dual labor market, which is shifting from a rural migration versus urban workers setup to informal workers versus formal workers setup, and present some interesting results. Our study is the first to adopt the IV methodology and the Heckman (1979) two-step procedure simultaneously for the estimation of economic returns on schooling in China.
Author: Zhaopeng (Frank) Qu Publisher: ISBN: Category : Languages : en Pages : 56
Book Description
The paper studies the levels and changes in wage inequality among Chinese rural-urban migrants during 2002-2007. Using data from two waves of national household surveys, we find that wage inequality among migrants decreased significantly between 2002 and 2007. Our analysis on the wage distribution further shows that the high-wage migrants experienced slower wage growth than middle-and low-wage migrants - a primary cause of declining inequality of migrants. By using distributional decomposition methods based on quantile regression, we find that overall between-group effect dominates in the whole wage distribution, which means that the change in returns to the characteristics (education, experience and other employment characteristics) plays a key role, but on the upper tails of the wage distribution, the within group effect (residual effect) dominates, implying that the unobservable factors or institutional barriers do not favor the migrants at the top tail of the wage distribution. We also study wage differential between migrants and urban natives, and find that though the wage gap is narrowed, gap at upper wage distribution is becoming bigger. Overall, the results suggest that there exists strong "glass ceiling" for migrants in urban labor market.
Author: Publisher: ISBN: Category : Sociology Languages : en Pages : 534
Book Description
CSA Sociological Abstracts abstracts and indexes the international literature in sociology and related disciplines in the social and behavioral sciences. The database provides abstracts of journal articles and citations to book reviews drawn from over 1,800+ serials publications, and also provides abstracts of books, book chapters, dissertations, and conference papers.
Author: Yuanyuan Chen
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