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Self‐employment of rural‐to‐urban migrants in China | Emerald Insight
Source: emerald.com
Article summary:
1. The paper explores the determinants of self-employment among rural-to-urban migrants in China using a sample from the 2008 Rural-Urban Migration in China and Indonesia survey.
2. Self-employed migrants are positively selected with respect to their unobserved characteristics, and their wages are substantially higher than what they would have obtained had they chosen paid work.
3. The wage differential is found to be an important determinant of self-employment, even after accounting for migration selectivity bias and heterogeneity across cities, industries, and occupations. Policy should target reducing gaps between urban residents and migrants to provide equal access to business opportunities.
Article analysis:
The article "Self-employment of rural-to-urban migrants in China" explores the determinants of self-employment among rural-to-urban migrants in China. The study is based on a sample of migrant household heads from the 2008 Rural-Urban Migration in China and Indonesia (RUMiCI) survey. The authors use an endogenous switching model to estimate the wage differential between self-employed and employed workers, which is then used to estimate the employment choice.
The key finding of the study is that migrants who choose self-employment are positively selected in terms of their unobservable characteristics. Moreover, the wage differential has a strong positive effect on the probability of choosing self-employment. However, there are some potential biases and limitations to consider.
One limitation is that the study only focuses on one country, China, and may not be generalizable to other contexts. Additionally, while the authors acknowledge that policy should target reducing gaps between urban residents and migrants, they do not explore potential risks or negative consequences of promoting self-employment among migrants.
Furthermore, there is a potential bias towards promoting self-employment as a desirable outcome for migrants without fully exploring alternative options or considering potential challenges or barriers to success. The study also does not address potential exploitation or lack of protections for self-employed migrants.
Overall, while the study provides valuable insights into the determinants of self-employment among rural-to-urban migrants in China, it is important to consider its limitations and potential biases when interpreting its findings.
Topics for further research:
Risks and challenges of self-employment for rural-to-urban migrants in China
Exploitation and lack of protections for self-employed migrants in China
Alternative employment options for rural-to-urban migrants in China
Policy interventions to reduce gaps between urban residents and migrants in China
Self-employment trends and patterns among migrants in other countries
Implications of self-employment for social mobility and economic development in China