How Urban Segregation Distorts Chinese Migrants’ Consumption?

Chen, Binkai; Lü, Ming; Zhong, Ninghua

doi:10.1016/j.worlddev.2014.11.019

Cited by 62 publications

(63 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The paper finds that consumption and the marginal propensity to consume exhibit heterogeneity across households, unlike in Chen et al (2015) and Wang and Fang (2015). Social welfare programs (especially medical and pension insurance), self-employment, an urban hukou, longer durations of migration, living in self-owned homes, and education all have sizable positive effects on consumption.…”

Section: Introductionmentioning

confidence: 80%

“…The literature explaining migrant consumption in the PRC is sparse, but several studies have emerged recently, including Chen et al (2015), Wang and Fang (2015), Dreger et al (2015), Fang and Sakellariou (2016), and Chen (2017), all of which suggest that migrant households consume less than their local counterparts. As pointed out previously, these studies often treat the hukou system as a whole, and specific disadvantages of non-local hukou are rarely examined, except for the household pension coverage rate in Wang and Fang (2015).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Why do migrant households consume so little?

Chen

2018

China Economic Review

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication.ADB recognizes "China" as the People's Republic of China. The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of ADBI, ADB, its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Working papers are subject to formal revision and correction before they are finalized and considered published.Asian Development Bank Institute Kasumigaseki Building, 8th Floor 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractExploring data from the urban and migrant household surveys of the Chinese Household Income Project (CHIP), this paper dissects the underlying causes of the depressing effect of the hukou system on migrant household consumption into two channels. On one hand, the disentitlement to local urban hukou promotes temporary migration and incentivizes migrant households to save their transitory income. On the other hand, it creates financial insecurity through barriers to employment, social welfare, and medical insurance, etc., thereby encouraging precautionary saving. Factors reflecting these considerations, such as medical and pension insurance, the duration of migration, and local homeownership, are specifically modeled, and are found to contribute to the discrepancies in consumption between migrant and local urban households, among other factors. In addition, the marginal propensity to consume exhibits heterogeneity across households; it is higher with a longer duration of migration, local homeownership, and self-employment. The lack of these attributes further reinforces the reluctance of migrant households to consume.

show abstract

Section: Introductionmentioning

confidence: 80%

Section: Introductionmentioning

confidence: 99%

Why do migrant households consume so little?

Chen

2018

China Economic Review

View full text Add to dashboard Cite

show abstract

“…Thus, migrants have a strong incentive to minimize their consumption in cities in order to remit as much as possible to their rural families. 11 Chen et al (2015) find that the consumption of migrants is 16-20-percent lower than that of local urban residents.…”

Section: Consumption and Remittance Behavior Of Migrantsmentioning

confidence: 96%

New Trends in Internal Migration in China: Profiles of the New‐generation Migrants

Zhao

Liu

Zhang

2018

China and World Economy

View full text Add to dashboard Cite

“…We assume that in the final steady state, a one-parent household bears 0.75 child at age 25, which is the average fertility rate between 2000 and 2010. 10 We then fit a gradual change of birth rate in the model to match the data. 11…”

Section: Exogenous Processesmentioning

confidence: 99%

“…12 9 To reduce the number of parameters, we estimate the efficiency function as a polynomial of degree 2 with respect to age. 10 Since our household consists of a single adult, we divide the average number of children per household 1.5 by 2 to obtain 0.75. 11 Since fertility is fixed at age 25, to generate a gradual change of population distribution, the change of fertility has to follow a constant rate and to stop in 25 years.…”

Section: Exogenous Processesmentioning

confidence: 99%

Population Aging, Credit Market Frictions, and Chinese Economic Growth

Dotsey¹,

Li²,

Yang³

2019

Working Paper (Federal Reserve Bank of Philadelphia)

View full text Add to dashboard Cite

We build a unified framework to quantitatively examine population aging and credit market frictions in contributing to Chinese economic growth between 1977 and 2014. We find that demographic changes together with endogenous human capital accumulation account for a large part of the rise in per capita output growth, especially after 2007, as well as some of the rise in savings. Credit policy changes initially alleviate the capital misallocation between private and public firms and lead to significant increases in both savings and output growth. Later, they distort capital allocation. While contributing to further increase in savings, the distortion slows down economic growth. Among factors that we consider, increased life expectancy and financial development in the form of reduced intermediation cost are the most important in driving the dynamics of savings and growth.

show abstract

How Urban Segregation Distorts Chinese Migrants’ Consumption?

Cited by 62 publications

References 39 publications

Why do migrant households consume so little?

Why do migrant households consume so little?

New Trends in Internal Migration in China: Profiles of the New‐generation Migrants

Population Aging, Credit Market Frictions, and Chinese Economic Growth

Contact Info

Product

Resources

About