City-level hukou-based labor market discrimination and migrant entrepreneurship in China

A previously undocumented association between city-level degree of hukou-based labor market discrimination and migrant’s individual entrepreneurship engagement is examined. Applying the Oaxaca–Blinder decomposition analysis on the micro data from the China Migrants Dynamic Survey (CMDS) suggests tha...

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Main Authors: Jie Chen, Mingzhi Hu
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2021-08-01
Series:Technological and Economic Development of Economy
Subjects:
Online Access:https://journals.vgtu.lt/index.php/TEDE/article/view/15006
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author Jie Chen
Mingzhi Hu
author_facet Jie Chen
Mingzhi Hu
author_sort Jie Chen
collection DOAJ
description A previously undocumented association between city-level degree of hukou-based labor market discrimination and migrant’s individual entrepreneurship engagement is examined. Applying the Oaxaca–Blinder decomposition analysis on the micro data from the China Migrants Dynamic Survey (CMDS) suggests that hukou-based labor market discrimination can on average explain a 6.3% differential in personal income for rural migrants relative to otherwise identical urban migrants. A one standard deviation increase in a city’s average hukou-based labor market discrimination is associated with roughly 2.9 percentage point higher of entrepreneurship rate among rural migrants, holding other things equal. Furthermore, city-level hukou-based labor market discrimination is associated with much higher propensity for engagement in necessitybased entrepreneurship compared with opportunity-based entrepreneurship. Our empirical work also suggests that the association between city-level hukou discrimination and migrant entrepreneurship is more prominent for people with middle level of education, young people, married people, and renters. Policy implications of these findings are discussed. First published online 05 July 2021
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spelling doaj.art-cbb2c1df3fcd4de8b6b6fe5c7f9f92ee2022-12-21T23:08:02ZengVilnius Gediminas Technical UniversityTechnological and Economic Development of Economy2029-49132029-49212021-08-012751095111810.3846/tede.2021.1500615006City-level hukou-based labor market discrimination and migrant entrepreneurship in ChinaJie Chen0Mingzhi Hu1School of International and Public Affairs & China Institute for Urban Governance, Shanghai Jiao Tong University, 200240 Shanghai, ChinaSchool of Management & Chinese Academy of Housing and Real Estate, Zhejiang University of Technology, 310014 Hangzhou, Zhejiang, ChinaA previously undocumented association between city-level degree of hukou-based labor market discrimination and migrant’s individual entrepreneurship engagement is examined. Applying the Oaxaca–Blinder decomposition analysis on the micro data from the China Migrants Dynamic Survey (CMDS) suggests that hukou-based labor market discrimination can on average explain a 6.3% differential in personal income for rural migrants relative to otherwise identical urban migrants. A one standard deviation increase in a city’s average hukou-based labor market discrimination is associated with roughly 2.9 percentage point higher of entrepreneurship rate among rural migrants, holding other things equal. Furthermore, city-level hukou-based labor market discrimination is associated with much higher propensity for engagement in necessitybased entrepreneurship compared with opportunity-based entrepreneurship. Our empirical work also suggests that the association between city-level hukou discrimination and migrant entrepreneurship is more prominent for people with middle level of education, young people, married people, and renters. Policy implications of these findings are discussed. First published online 05 July 2021https://journals.vgtu.lt/index.php/TEDE/article/view/15006hukou discriminationlabor marketmigrant entrepreneurshipchina
spellingShingle Jie Chen
Mingzhi Hu
City-level hukou-based labor market discrimination and migrant entrepreneurship in China
Technological and Economic Development of Economy
hukou discrimination
labor market
migrant entrepreneurship
china
title City-level hukou-based labor market discrimination and migrant entrepreneurship in China
title_full City-level hukou-based labor market discrimination and migrant entrepreneurship in China
title_fullStr City-level hukou-based labor market discrimination and migrant entrepreneurship in China
title_full_unstemmed City-level hukou-based labor market discrimination and migrant entrepreneurship in China
title_short City-level hukou-based labor market discrimination and migrant entrepreneurship in China
title_sort city level hukou based labor market discrimination and migrant entrepreneurship in china
topic hukou discrimination
labor market
migrant entrepreneurship
china
url https://journals.vgtu.lt/index.php/TEDE/article/view/15006
work_keys_str_mv AT jiechen citylevelhukoubasedlabormarketdiscriminationandmigrantentrepreneurshipinchina
AT mingzhihu citylevelhukoubasedlabormarketdiscriminationandmigrantentrepreneurshipinchina