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Labour Market Impact Of Large Scale Internal Migration On Chinese Urban 'Native' Workers

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Executive Summary

Hundreds of millions of rural migrants have moved into Chinese cities since the early 1990s contributing greatly to economic growth, yet, they are often blamed for reducing urban 'Native' workers' employment opportunities, suppressing their wages and increasing pressure on infrastructure and other public facilities. This paper examines the causal relationship between rural-urban migration and urban native workers' labour market outcomes in Chinese cities. After controlling for the endogeneity problem the authors' results show that rural migrants in urban China have modest positive or zero effects on the average employment and insignificant impact on earnings of urban workers.

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