Published online by Cambridge University Press: 12 February 2009
One of the striking outcomes of China's economic reforms is the emergence of inter-regional labour markets as rural workers have poured into the nation's urban and rural economies. Policy makers in China, as elsewhere in the world, have treated the inter-regional migrant labour force with ambiguity. Migration may increase efficiency, contribute to poverty reduction and make China's economy more competitive, but leaders fear the congestion, social unrest and loss of political control which might accompany an increasingly mobile labour force.
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11. The sample villages were selected randomly on the basis of a stratified random sampling procedure. They all come from eight representative provinces (Zhejiang, Shandong, Hubei, Sichuan, Yunnan, Shaanxi, Liaoning and Guangdong) which were randomly selected from each of China's traditional geographic regions (East China - huadong, North China - huabei. Central China - huazhong, Sichuan, South-west China - xinan, North-west China - xibei, North-east China - dongbei and South China - huanan). Eight counties were selected from each province, two from each quartile of a list of counties arranged in descending order of gross value of industrial output (GVIO). GVIO was used on the basis of the conclusions of Rozelle that GVIO is one of the best predictors of standard of living and development potential and is often more reliable than net rural per capita income (Rozelle, Scott, “Stagnation without equity: changing patterns of income and inequality in China's post-reform rural economy,” The China Journal, No. 35 (01 1996), pp. 63–96Google Scholar). Two townships, one above the median GVIO and one below, were randomly selected from each county. Two villages in each township were selected in the same manner. Data problems in Liaoning and two counties in Yunnan precluded their inclusion in the analyses (one team in Yunnan failed to complete their study, and data in Liaoning were collected during pretesting and deemed incomparable to the rest of the data). Data collection in Guangdong was so expensive that the study was never started.
12. Leaders were instructed to classify villagers using their most important jobs and to ignore transient, minor employment. Ignoring short-term, less important farm work will lead to a systematic underreporting of off-farm participation. However, farmers sometimes have two main lines of work, so there is some double counting. Although such a reporting method accurately records the pattern of primary employment activity, it would also lead to over-reporting of off-farm labour participation rates. It is unclear to what extent the two errors offset one another.
13. The survey also attempted to estimate the number of permanent outmigrants (yongjiu buanzou de ren/hu). For the purposes of this study permanent outmigrants are those who leave the village for employment purposes only, not because of marriage, education or retirement. Permanency, in contrast to long-term status, signals that the migrant has no intention of returning to or residing in the village in the near future. One signal of permanency may be that leaders officially transfer a household's or individual's residency permit (hukou) to another jurisdiction or unit. Such a transfer is not an adequate sign of permanency in itself because the residency permit may move even though the person continues to live in the village and has no intention of leaving. Alternatively, people can attain permanent migrant status without changing residency. For example, if a household's residency officially remained in the village, but it sold or leased its house and physically moved out of the village for several years, enumerators counted the members of such a household as permanent outmigrants. Leaving the village permanently was such a rare event that the survey tabulated the total number of households leaving the village in the periods 1989–95 and 1980–88. For the remainder of the article, migrants refer only to long-term, not permanent, migrants.
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70. The analysis includes two measures from Skinner: CPZ and CS. CPZ (Core-Periphery Zone) measures the distance of a village from the “core” metropolis of the macro region and is measured from 1 to 7, 7 being the most remote. CS (City System) is an index of the urbanization of the county that the village belongs to. It ranges from 1 (highly urban, like the Shanghai suburbs) to 6 (highly rural, like the most rural areas of northern Jiangsu and eastern Anhui). Provincial dummies account for differences between provinces and control for differential policies and wage differentials (Meng, Xin, “Regional wage gap, information flow, and rural-urban migration”Google Scholar; Yang, and Hao, , “Rural-urban disparity and sectoral labor allocation in China”).Google Scholar
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76. The unit of observation is the village not the individual, so our results shed little light on the debate over who within the village chooses to migrate.
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78. We use two models, ordinary least squares (OLS) and tobit because the dependent variable, percentage of the village labour force in the migrant labour force, is limited. OLS results are efficient but slightly biased; tobit results arc not as efficient, but unbiased. Our conclusions rely primarily on the OLS results because only 6% of villages reported no migration (0%), so OLS bias is minimal.
79. Per capita village income in 1988 is used instead of per capita income in 1995 to avoid endogeneity. We expect that villages with high levels of migration may have higher incomes because of migration (migrants often send money home) and we wish to determine the effect of income on migration rather than the effect of migration on income.
80. Because this variable also captures all village characteristics not explicitly included in the regression, we explicitly include as many village characteristics as possible to isolate the chain effect.