Are workers close to cities paid higher non-agricultural wages in rural China?

Are workers close to cities paid higher non-agricultural wages in rural China?

[SHS:ECO] Humanities and Social Sciences/Economy and finances

Remoteness

regional labor market

China Codes

wages

In the present study, we investigate whether workers close to cities are paid higher non-agricultural wages than workers in outlying rural areas. We find that workers close to urban areas not only benefit from more opportunities to engage in non-agricultural activities, but also from better paid jobs. In addition, distance exhibits a strongly nonlinear impact. Distance always has a negative impact on wages but the effect is more detrimental, the closer the village is to the urban center. We also find evidence of urban hierarchy effects: workers living close to bigger cities are paid higher wages. Finally, we provide evidence on the transmission channels at work.

Duvivier, Chloe

Renard, Mary-Françoise

Li, Shi

2012-02-24

ENG

preprint

http://halshs.archives-ouvertes.fr/halshs-00673698

http://halshs.archives-ouvertes.fr/docs/00/67/36/98/PDF/2012.05.pdf