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Educational choice, rural-urban migration and economic development

Author: Pei-Ju Liao; Ping Wang; Yin-Chi Wang; Chong K Yip; National Bureau of Economic Research,
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2017.
Series: Working paper series (National Bureau of Economic Research), no. 23939.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Observing rapid structural transformation accompanied by a continual process of rural to urban migration in many developing countries, we construct a micro founded dynamic framework to explore how important education-based migration is, as opposed to work-based migration, for economic development, urbanization and city workforce composition. We then calibrate our model to fit the data from China over the period from  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Pei-Ju Liao; Ping Wang; Yin-Chi Wang; Chong K Yip; National Bureau of Economic Research,
OCLC Number: 1006509837
Notes: "October 2017"
Description: 1 online resource (37, 13 pages) : illustrations.
Series Title: Working paper series (National Bureau of Economic Research), no. 23939.
Responsibility: Pei-Ju Liao, Ping Wang, Yin-Chi Wang, Chong Kee Yip.

Abstract:

Observing rapid structural transformation accompanied by a continual process of rural to urban migration in many developing countries, we construct a micro founded dynamic framework to explore how important education-based migration is, as opposed to work-based migration, for economic development, urbanization and city workforce composition. We then calibrate our model to fit the data from China over the period from 1980 to 2007, a developing economy featuring not only large migration flows but major institutional reforms that may affect work and education based migration differently. We find that, although education-based migration only amounts to one-fifth of that of work-based migration, its contribution to the enhancement of per capita output is larger than that of work-based migration. Moreover, the abolishment of the government job assignment for college graduates and the relaxation of the work-based migration have limited effects on economic development and urbanization. Furthermore, the increase in college admission selectivity for rural students plays a crucial but negative role in China's development, lowering per capita output and worsening the high-skilled employment share in urban areas.

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