Labor Mobility, Marketization and Urban Income Change: Potential Rural-Urban Harmonization or Not

Kunrong Shen , Jixiang Yu , Jian Li

Front. Econ. China ›› 2011, Vol. 6 ›› Issue (3) : 447 -463.

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Front. Econ. China ›› 2011, Vol. 6 ›› Issue (3) : 447 -463. DOI: 10.1007/s11459-011-0141-5
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Labor Mobility, Marketization and Urban Income Change: Potential Rural-Urban Harmonization or Not

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Abstract

Previous literature omitted marketization process, a distinct phenomenon in transitional China, when the relationship between immigrants and indigenous urban income is investigated. We find that (1) marketization is a key factor of rural-urban harmonization; (2) segmentation of labor market has no real effect on urban income change since it may be evaded partly by rural labor; (3) the key determinants of urban income change are the cross effect between marketization and mobility, openness, and government spending; and (4) the marginal effect of immigrants is positive in some regions although it is averagely negative during the sample period. Rural-urban harmonization is totally possible if marketization process continues.

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labor mobility / urban income / marketization / segmentation / ruralurban harmonization

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Kunrong Shen, Jixiang Yu, Jian Li. Labor Mobility, Marketization and Urban Income Change: Potential Rural-Urban Harmonization or Not. Front. Econ. China, 2011, 6(3): 447-463 DOI:10.1007/s11459-011-0141-5

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