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The externality impact of internal migration in China: Linear and nonlinear approaches

Shanfei Zhang
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Shanfei Zhang: University of East Anglia

French Stata Users' Group Meetings 2023 from Stata Users Group

Abstract: I analyze the influence of Chinese internal migration on the local labor market outcomes. In this presentation, both linear and quadratic equations are estimated to explore a comprehensive relationship between migrant share and native workers' wages in a city. My findings are twofold. In the ordinary least-squares regression model, every 10% increase in immigrants would lead to a 5.67% decrease in local labor wages. However, in the nonlinear model a turning point is observed. The average wage level decreases when the migrant share is lower than 27.82%, while increases with the migrant share larger than 27.82% are complementary, by IV regression.

Date: 2023-08-11
New Economics Papers: this item is included in nep-lab, nep-mig and nep-ure
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http://repec.org/frsug2023/France23_Zhang.pdf presentation materials (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:boc:fsug23:11

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