Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/198800
Authors: 
Imbert, Clement
Seror, Marlon
Zhang, Yifan
Zylberberg, Yanos
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 7440
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper estimates the causal effect of rural-urban migration on urban production in China. We use longitudinal data on manufacturing firms between 2001 and 2006 and exploit exogenous variation in rural-urban migration due to agricultural price shocks. Following a migrant inflow, labor costs decline and employment expands. Labor productivity decreases sharply and remains low in the medium run. A quantitative framework suggests that destinations become too labor-abundant and migration mostly benefits low- productivity firms within locations. As migrants select into high-productivity destinations, migration however strongly contributes to the equalization of factor productivity across locations.
Subjects: 
rural-urban migration
structural transformation
urban production
JEL: 
D24
J23
J61
O15
Document Type: 
Working Paper

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