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

Dependent Variable:

Percent of Incoming Workers among
Workers in Village Enterprises

Percent of Commuters among
Workers in Village Enterprises

Percent of Migrants among Workers
________in Village Enterprises_______

_______1988

_______1995

_______1988

_______1995

_______1988

_______1995_______

OLS

Tobit

OLS

Tobit

OLS

Tobit

OLS

Tobit

OLS

Tobit

OLS

Tobit

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

Costs

Local Labor Cost^a

(1)

0.013
(0.42)

0.007
(0.14)

0.013
(1.16)

0.013
(1.02)

-0.0005
(0.02)

-0.03

(0.48)

-0.002
(-0.20)

-0.009
(0.61)

0.01
(0.52)

0.06
(0.59)

0.15*
(2.04)

0.015
(1.27)

Lagged Dependent
Variable

(2)

-

-

28.5
(2.91)

32.0
(3.02)

-

-

31.9***
(2.95)

38.8**
(2.90)

-

-

49.8***
(5.71)

69.0***
(5.10)

Industry Features^b

Private Enterprise

(3)

17.9**
(2.21)

29.9**
(2.22)

4.3
(0.55)

5.2
(0.61)

3.9
(0.63)

10.6
(0.75)

7.5
(1.14)

6.0
(0.70)

13.9*
(2.02)

70.3**
(2.47)

-4.19
(-0.82)

-4.7
(0.55)

Light Industry

(4)

27.6***
(3.06)

50.5***
(3.68)

13.8*
(1.87)

19.8**
(2.44)

29.2***
(4.19)

60.4***
(4.10)

11.4*
(1.83)

19.8**
(2.47)

-1.6
(0.21)

3.0
(0.13)

1.66
(0.35)

12.3
(1.49)

Village Features

Size of Labor Force(⁵)

-0.03**

(2.24)

-0.05*
(2.09)

-0.01

(1.06)

-0.01
(-0.86)

-0.001
(1.09)

-0.02

(0.81)

-0.02**
(2.40)

-0.03**
(2.59)

-0.02

(1.65)

-0.05

(1.18)

0.012*
(1.69)

0.02*
(1.90)

Size of Arable

(6)

0.01*

0.02**

0.0002

-0.001

0.01**

0.02**

0.002

0.002

0.002

0.005

-0.003

-0.004

Land

(2.08)

(2.39)

(0.05)

(0.21)

(2.21)

(2.50)

(0.80)

(0.46)

(0.43)

(0.39)

(1.09)

(0.95)

F-Stat on

(7)

1.7

1.9

1.7

1.72

1.9*

1.9*

3.2***

3.1***

1.3

0.8

4.8***

4.3***

Provincial
Dummies

Adj. R-Squared

(8)

0.38

-

0.24

-

0.41

-

0.36

-

0.23

-

0.43

-