University of Leicester
Browse
20170731draft11_submission3.pdf (374.6 kB)

Network effects on labor contracts of internal migrants in China: a spatial autoregressive model

Download (374.6 kB)
journal contribution
posted on 2018-03-13, 11:51 authored by Badi H. Baltagi, Ying Deng, Xiangjun Ma
This paper studies the fact that 37% of the internal migrants in China do not sign a labor contract with their employers, as revealed in a nationwide survey. These contract-free jobs pay lower hourly wages, require longer weekly work hours, and provide less insurance or on-the-job training than regular jobs with contracts. We find that the co-villager networks play an important role in a migrant’s decision on whether to accept such insecure and irregular jobs. By employing a comprehensive nationwide survey in 2011 in the spatial autoregressive logit model, we show that the common behavior of not signing contracts in the co-villager network increases the probability that a migrant accepts a contract-free job. We provide three possible explanations on how networks influence migrants’ contract decisions: job referral mechanism, limited information on contract benefits, and the “mini-labor union” formed among co-villagers, which substitutes for a formal contract. In the subsample analysis, we also find that the effects are larger for migrants whose jobs were introduced by their co-villagers, male migrants, migrants with rural Hukou, short-term migrants, and less educated migrants. The heterogeneous effects for migrants of different employer types, industries, and home provinces provide policy implications.

History

Citation

Empirical Economics, 2017, pp. 1-32

Author affiliation

/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/Department of Economics

Version

  • AM (Accepted Manuscript)

Published in

Empirical Economics

Publisher

Springer Verlag for Physica Verlag

issn

0377-7332

eissn

1435-8921

Copyright date

2017

Available date

2018-08-30

Publisher version

https://link.springer.com/article/10.1007/s00181-017-1333-3

Notes

The file associated with this record is under embargo until 12 months after publication, in accordance with the publisher's self-archiving policy. The full text may be available through the publisher links provided above.

Language

en

Usage metrics

    University of Leicester Publications

    Categories

    No categories selected

    Keywords

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC