THE RISE OF RURAL-TO-RURAL LABOR MARKETS IN CHINA

Despite the rapid increase in the demand for incoming labor, we find no evidence
that labor coming in from other villages negatively impacts the non-farm employment
opportunities of local residents or the wages they receive. Villages where the
concentration of incoming workers in village industry has increased are the most
successful villages at providing ample and well paid non-farm employment to their
residents. Real wages in villages that have experienced an increase in the number of
workers coming in from other villages have not changed significantly, as have wages in
the villages with no incoming workers. The lack of any noticeable injury to the
livelihoods of residents in the receiving villages give reason for optimism that this
important source of non-farm employment growth will remain relatively unrestricted.

References

Banister, J. and Harbaugh, C. W.. 1992. “Rural Labor Force Trends in China,” China
Agriculture and Trade Report. (Economic Research Service. July, 1992).

Carter, C., F. Zhong, and F. Cai. 1996. China’s Ongoing Agricultural Reform. (San
Francisco: The 1990 Institute)

Chan, K. W.. 1996. “Internal Migration in China: an Introductory Overview,” Chinese
Environment and Development. v. 7(1-2): 3-13.

28

<<   26   27   28   29   30   31   32   >>

More intriguing information