Migrant Labor Markets and the Welfare of Rural Households in the Developing World [electronic resource] : Evidence From China / de Brauw, Alan
Material type: TextPublication details: Washington, D.C., The World Bank, 2008Description: 1 online resource (60 p.)Subject(s): Consumption | Debt Markets | Economic Theory and Research | Finance and Financial Sector Development | Health, Nutrition and Population | Household income | Human Development | Labor Markets | Labor Policies | Macroeconomics and Economic Growth | Migrant | Migration | Policy Research | Policy Research Working Paper | Population Policies | Progress | Public Services | Social Protections and Labor | Urban migrationAdditional physical formats: de Brauw, Alan.: Migrant Labor Markets and the Welfare of Rural Households in the Developing World.Online resources: Click here to access online Abstract: In this paper, the authors examine the impact of reductions in barriers to migration on the consumption of rural households in China. The authors find that increased migration from rural villages leads to significant increases in consumption per capita, and that this effect is stronger for poorer households within villages. Household income per capita and non-durable consumption per capita both increase with out-migration, and increase more for poorer households. The authors also establish a causal relationship between increased out-migration and investment in housing and durable goods assets, and these effects are also stronger for poorer households. The authors do not find robust evidence, however, to support a connection between increased migration and investment in productive activity. Instead, increased migration is associated with two significant changes for poorer households: increases both in the total labor supplied to productive activities and in the land per capita managed by the household. In examining the effect of migration, we pay considerable attention to developing and examining our identification strategy.In this paper, the authors examine the impact of reductions in barriers to migration on the consumption of rural households in China. The authors find that increased migration from rural villages leads to significant increases in consumption per capita, and that this effect is stronger for poorer households within villages. Household income per capita and non-durable consumption per capita both increase with out-migration, and increase more for poorer households. The authors also establish a causal relationship between increased out-migration and investment in housing and durable goods assets, and these effects are also stronger for poorer households. The authors do not find robust evidence, however, to support a connection between increased migration and investment in productive activity. Instead, increased migration is associated with two significant changes for poorer households: increases both in the total labor supplied to productive activities and in the land per capita managed by the household. In examining the effect of migration, we pay considerable attention to developing and examining our identification strategy.
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