The changing texture of the city-size wage differential in Chinese cities – Effects of skill and identity

This study examines the city-size wage premium (CSWP) for local urban hukou holders (citizens) and rural migrants by utilizing data from the Chinese Household Income Project surveys (CHIP 2002 and 2013) employing OLS and Propensity Score Matching method. Heterogeneity of skills (measured by level of education) is found to be one determinant of the city-size wage disparity. But irrespective of skills, citizens receive a higher city-size premium than the rural migrants; nevertheless, the premium received by rural migrants has increased over the past few years. Within the similar occupation and type of firm, a highly skilled citizen received a CSWP of Yuan 880.08 in 2013 (Yuan 347.48 in 2002) on average per month. Whereas, a highly skilled rural migrant received an average monthly premium of Yuan 601.71 in 2013, and an insignificant premium in 2002. The corresponding values for low skilled citizens and rural migrants in 2013 are Yuan 415.67 and 267.27 respectively. Our results establish that there has been a positive effect on rural migrants from the relaxation of policies and labour laws, and a move towards equalization within the same level of skills.     

Rural–urban migration and urbanization in China: Evidence from time-series and cross-section analyses

Since 1978, China has experienced a rapid and unprecedented process of urbanization, created by the history's largest flow of rural–urban migration in the world. This article attempts (a) to assess the role of the cityward migration in China's urbanization in 1978–1999 and (b) to empirically investigate factors behind the migration boom with time-series and cross-section data. We find that (a) rural–urban migration made dominant contributions to Chinese urban population growth; (b) while moving together with the Chinese economy, the causal link runs from economic growth to migration, not vice versa; (c) interprovince migrants were encouraged by the rural–urban income gap and discouraged by their geographic distances to destinations; and (d) the amount of intraprovince migrants is positively related to rural–urban income gap and urban population in that province.     

Glass ceiling effect in urban China: Wage inequality of rural-urban migrants during 2002–2007

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 an 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, the gap at the upper wage distribution is becoming bigger. Overall, the results suggest that there exists a strong “glass ceiling” for migrants in the urban labor market.     

China's urban poor – Comparing twice poverty between residents and migrants in 2013 and 2018

Using data from the China Household Income Project in 2013 and 2018, this paper studies relative poverty among rural hukou holders living in urban China and urban hukou holders. People living in households with an income below a fixed percent of the median per-capita income and wealth below the same fixed percent of the median per-capita wealth among urban residents are deemed as relative poor. Although migrants with rural hukou living in urban China were more prone to twice poverty than urban residents in 2013, this was not generally the case in 2018.A multivariate analysis shows several factors to be related to the probability of being twice relative poor. Even considering these factors, a rural hukou status increased the probability of being twice relative poor in 2013. In contrast, such an excess risk of being twice relative poor was much lesser outspoken in middle and low-ranking cities in 2018. However, rural to urban migrants living in high-ranking cities had a somewhat higher risk of being relative poor than urban residents with the same characteristics in 2018.     

Top incomes and income polarisation in China

Income polarisation is normally measured using household survey data, but such data often provide insufficient coverage of top incomes. This paper combines data from the Chinese Household Income Project and Top Incomes in China databases for 2002, 2013, and 2018 to study the trends in, reasons for, and heterogeneity of income polarisation in China between 2002 and 2018. Our main findings are as follows. (1) Introducing external top-income data increases the estimated level of polarisation in each of the three surveyed years, but polarisation trends are not affected. (2) Polarisation increases significantly between 2002 and 2013, due to a rise in polarisation among poor residents. Polarisation remains stable between 2013 and 2018, due to the expansion of the middle-income group; the convergence to the middle of the distribution is attributable mainly to the poor, rather than the rich. (3) In 2018, levels of polarisation are higher among male, well educated, and urban residents than among female, less educated, and rural residents, respectively.     

The long-term evolution of national income inequality and rural poverty in China

Using the five waves of the China Household Income Project surveys conducted during 1988–2013, we investigate long-term changes in national income inequality and rural poverty in China. National income inequality rose markedly to 2007 and thereafter fell slightly. Income growth was widely shared, but inequality increased because the high-income percentiles had faster income growth than lower percentiles and because the gap between urban and rural household incomes widened. The fall in income inequality after 2007 reflects faster income growth among low-income percentiles and the impacts of newly introduced redistributive policies. The paper also finds a considerable, ongoing poverty reduction in rural China. A poverty decomposition analysis indicates that this rural poverty reduction was mostly due to income growth rather than redistribution.     

持久收入理论与我国城乡居民消费——基于省际面板数据的检验

本文运用基于持久收入和暂时收入的两种分解方法的省际面板模型检验了持久收入理论的三个假设。结果发现,我国城镇和农村居民消费与其持久收入均显著相关。我国城镇居民消费与其暂时收入显著相关;安徽、黑龙江、吉林、陕西、甘肃、青海、云南和海南等省农村居民的暂时收入的边际消费倾向等于零,而其他省份的不等于零。"λ假说"检验表明,我国城镇和农村居民消费对当期收入都是过度敏感的,导致PIH的局限性。选择误差修正项的绝对值表征不确定性和远期的流动性约束对城镇(或农村)居民消费的影响,计量结果显示,不确定性和远期的流动性约束对城镇(或农村)居民消费产生了明显的负面影响。农村居民的预防性储蓄动机强度大于城镇居民。     

中国尚未到达刘易斯转折点

本文提出中国进入刘易斯转折点的判断标准:农民工实际工资较快提升,农民工与农民纯收入之比快速增加,"民工荒"及农民工工资上涨原因是劳动力短缺;实证表明中国尚未进入刘易斯转折点。最后针对"民工荒"及农民工工资上涨提出政策建议:推进农民工有序市民化、加快土地流转进程、力促农村剩余劳动力条理转移和提高农民工劳动力市场质量。     

Can self-employment activity contribute to ascension to urban citizenship? Evidence from rural-to-urban migrant workers in China

The ascension to urban citizenship and assimilation into urban life for rural to urban migrant workers is a pressing mission during the current process of rapid urbanization in developing China. However, the issue of how self-employed migrants, who account for up to 25 percent of total migrant workers in 2009 (Meng, 2012), acquire urban citizenship remains understudied. Using a unique sample from the 2009 Rural to Urban Migrants in China (RUMiC) survey, this paper explores whether self-employment choice contributes to migrant workers' ascension to urban citizenship and integration, and uncovers the underlying mechanisms. We find that although self-employed migrants are capable of earning a higher income, and improving their living conditions, their tendency to reside permanently in the city is not significantly different from their counterparts of wage workers. We argue that self-employed migrants, who are less covered by urban social securities and are more discriminated against by current urban household registration (Hukou) system, tend to lose faith in ascension to urban citizenship. It implies that a social security system with self-employed migrants being covered as well as an urban Hukou admission system favoring diverse human capital (especially taking into account entrepreneurship) would help accelerate the urbanization process.     

Inequality of opportunity in household income,China 2002–2018

This study contributes to the literature on inequality of opportunity (IOp) in China by covering a longer and more recent span of time, employing better measures of given characteristics, and analyzing IOp for household income per capita with comparisons to individual income. Furthermore, it analyzes how IOp differs between the rural- and urban-born, and how IOp changes across birth cohorts and with age. We use 2002, 2013 and 2018 data from the Chinese Household Income Study and focus on income inequality among working-age persons. We find that IOp in China declined, especially between 2013 and 2018. In 2002 the large contributors to IOp were region, hukou type at birth, and parents' characteristics. In 2018 the contributions of region, hukou type at birth and parents' occupation had decreased, but that of parents' education had increased. We find that IOp is larger among those born in rural than urban China. Furthermore, IOP's contribution to total inequality within each birth cohort is highest earlier in individuals' work lives and declines with age. IOp is higher for older than younger birth cohorts, reflecting that younger cohorts have benefited from increased opportunities associated with China's reforms and opening up.     

Does the "missing" high-income matter? -Income distribution and inequality revisited with truncated distribution

The issue of missing high-income data in household surveys has been a constant concern among researchers and practitioners when drawing inferences on inequality measures, discussing the relationship between poverty and growth, and examining the relationship between expenditure and income. We introduce a truncated distribution technique to correct the potential bias caused by the missing high-income data. Using 2002/2007/2013 Chinese Household Income Project Survey data and the 2002/2007/2014 US Consumer Expenditure Survey data, we test and estimate three commonly used income distributions: lognormal, Singh Maddala, and Beta II distribution with/without the truncation assumption. We find that the truncated Beta II distribution best describes income distribution in China, while the truncated Singh Maddala best fits the income in the US. The missing high-income in China has a significant but small effect on the Gini and Theil coefficients for 2007, whereas the missing high-income in the US has significant effects for 2007 and 2014. The Gini coefficient increases from the sample mean 0.44 to the simulation mean of truncated Beta II distribution as 0.47 for China in 2007 and increases from the sample mean 0.4422/0.4485 to the simulated mean of truncated Singh Maddala distribution 0.4506/0.4588 for 2007 and 2014 respectively. We also check the impact of missing low-income individuals on inequality assessment and find that the missing low-income data does not appear to underestimate inequality.     

我国农村工业化和农村城镇化相互关系的实证分析

本文对1978年以来中国农业发展、农村工业化和农村城镇化三者之间的相互关系进行了Granger因果检验和VAR分析。结果显示：农村工业化对农业发展和农村城镇化产生了积极的推动作用．而农业发展对农村工业化和城镇化起到了负面影响；农村城镇化对农业发展和农村工业化均不具有显著影响。     

Consumption Structure of Migrant Worker Families in China

This study draws on a survey of migrants in 12 cities across four major urbanizing areas in China and investigates the structure of migrant worker families' urban and rural consumption. The results show that the structure of migrant worker families' consumption has been dominated by survival consumption. These families tend to live frugally in cities while engaging in conspicuous consumption in their rural hometowns. The structure of migrant worker families' consumption is mainly shaped by their income stability and wealth levels rather than their current income level. Moreover, migrant worker families with high educational levels and those who intend to settle permanently in cities are likely to allocate substantial expenditure to status and hedonic consumption and to upgrade their urban consumption structure.     

Residual wage inequality in urban China, 1995–2007

We use three waves of urban household survey from 1995 to 2007 to investigate the trends of residual inequality and its determinants. First, we find that the enlargement in both the overall and residual inequality was larger at the upper half of the wage distributions between 2002 and 2007. Between 1995 and 2002, however, it is the lower half that experienced larger increase in inequality. Second, by using two complementary semi-parametric methods, we find that composition effect is negligible. Instead, the change in skill prices plays a dominant role in the rise of residual inequality. Finally, by constructing a panel data at the city level, we find that ownership restructuring is an important factor that has caused the skill price to rise, especially in the earlier period. Another finding is that China's export share of GDP has a positive effect on the enlargement of residual wage inequality, especially in the period from 2002 to 2007.     

我国城镇化进程中农村收入阶层经济地位演化分析

文章运用CHNS数据库,从收入流动性视角,通过反事实计量和数值模拟方法,从众多影响因素中分解出城镇化因子对收入流动性的净效应,进而研究城镇化对我国农村收入阶层经济地位变化的影响。研究发现,农村虽存在较高收入流动性,但底层居民向上流动的机会并不大,且阶层联动结果证实了农村收入分布存在极化效应。在这一过程中,城镇化效应引起的农村收入流动性并不高,主要是引起相邻收入阶层之间经济地位转换;同时,从城镇化导致的阶层联动看,既有促进较高收入阶层和较低收入阶层向两极分化的作用,又有抑制中等收入阶层规模变小的作用。总体表明,城镇化对农村中等收入以上阶层经济地位提高更有利。     

How Can Chinese Farmers' Property Income Be Improved? A Population–Land Coupling Urbanization Mechanism

Balancing urban and rural development is an important political goal in China. The failure of rural land privatization has led to a low level of rural economic development and a vast property income gap between citizens and farmers. This paper illustrates the reasons for property income inequality from the perspective of the land tenure system and the dualistic household registration system. After evaluating the segmentation of the rural land market and the rigid nature of rural land assets, a population–land coupling urbanization mechanism is proposed. The paper argues that China's land property system has externalized a high degree of geospatial and social urban and rural intertwinement. Major reform of the rural land property rights system is required to correct the situation (further development of the social security system and stable urbanization) and to increase property income potential for farmers.     

Wage differentials between urban and rural-urban migrant workers in China

Since the end of the 1980s, the number of migrants working in the urban labor market has increased dramatically. However, migrant workers are treated differently from urban workers. In this paper we examine the labor market discrimination against rural migrants from the point of view of wage differentials using CHIP-2007 data. We apply Jann pooled method to deal with index number problem and use Heckman two step model to correct selection problem when decomposing the wage gap. The decomposition results show that a significant difference in wage gains persists between the two groups as late as 2007. In 2007 migrants only earned 49% of urban workers' income and 17% of the wage gap cannot be explained by observed factors. In detail, differences in educational attainment, work experience and distribution across industry, occupation, and ownership of enterprises account for most of the explained wage gap.     

浙江农村居民收入与生活消费支出的动态关系研究

文章在凯恩斯消费函数的基础上,利用协整理论,采用1978—2007年的年度统计数据,深入探讨了浙江农村居民收入与生活消费支出的动态相关性。基于邹至庄检验结果,分别对1978—1989年和1990—2007年两个时期收入一消费关系进行协整检验,得出两者之间存在着长期稳定均衡关系的结论,由此对收入与消费建立误差修正模型。实证分析的结果表明浙江农村居民收入和生活消费支出之间存在动态均衡机制。     

中国农村经济制度变迁与农民收入增长的实证研究——基于1978～2009年省际动态面板数据分析

本文通过对1978~2009年中国农村制度变迁与农村居民收入增长之间进行了理论和实证分析,将农村居民收入增长划分为五个不同的阶段,农村制度变迁对农民的收入增长具有阶段性的影响作用,农村制度变迁是农民收入增长的重要驱动力。并借助动态面板数据模型,对1978~2009年中国农村农作制度、农村价格制度、财税制度,以及农村人口变迁制度等制度因素对农村居民收入增长的影响进行实证分析和检验,由此建议应该把农村制度创新作为提高农民收入增长的突破口。     

农村金融发展与农民收入的关系:山东例证

利用山东省1978～2006年的时间序列数据,对农村金融发展与农民收入的关系进行了实证研究。结果表明,山东省农村金融发展与农民收入之间存在着稳定的协整关系,农村金融信贷促进了农民收入的增长,而农村储蓄对于农民收入的增加具有负效应。应采取增加农业贷款的支农力度,强化财政支农的力度,以及避免农村资金倒流等措施,促进农民收入的增加。