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Rural–urban migration and wage determination:
The case of Tianjin, China
1. Introduction
Since the mid-1980s, mass labor migration from the countryside to urban areas has been one of the most dramatic and noticeable changes in China. Based on survey data from Tianjin, this paper examines the characteristics of migrants and compares the employment and social conditions of migrants with those of permanent urban residents. It also investigates the determinants that affect wages of both migrant and nonimmigrant workers in order to evaluate how economic and social-demographic factors contribute to the earning gap between rural and urban workers.
The economic reform in China that started in 1978 has created a “floating population” as over 100 million people have left their villages and streamed into cities where manufacturing and businesses boom. The migration of labor from agricultural to non-agricultural industries has increased the average income of rural people as migrant workers send a significant portion of their income back home. At the same time, rural migrant laborers have made great contributions to economic growth by complementing the labor force of cities and providing low-cost work. However, the benefits from economic growth have not been fairly shared between urban and migrant workers, and clear disparities exist in Chinas urban and rural labor markets. It is estimated that between 12 and 15 million non-farm jobs will be required annually just to absorb this surplus labor.
Rural migrants generally make less money, receive far fewer benefits, and have no health insurance. Most live in precarious dormitories provided by their employers if they have any housing. Rural surplus laborers who moved to urban areas are called mingong to mark their difference from the city-dwelling workers. Rural migrants are treated as strangers and outsiders in cities. They are denied formal urban membership and substantive rights and their children are largely prohibited from att
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