Spatial mismatch, enclave effects and employment outcomes for rural migrant workers: empirical evidence from Yunnan Province, China

Stream: Chinese social policy: urbanisation
Date: Tuesday, 10 September 2019
Time: 3.45 pm – 5.05 pm

Abstract

The urbanisation in China is causing rural migrant workers to experience increasing spatial mismatch and enclave effects. No existing study has been conducted on the degree to which the spatial mismatch and enclave effects are related to employment outcomes. Extending upon the findings of existing research, this study separates the impact of spatial mismatch and that of the enclave effects for the first time. This study therefore investigates the influence of spatial mismatch and enclave effects on the employment and household incomes of individual migrant workers in the underdeveloped regions of Yunnan. This study uses cross-sectional data from 2015 Yunnan rural migrant worker urban integration household survey. After controlling for other influencing factors, the instrument variable probit and two-stage least square models were used to estimate the impact of housing location, commute time and social interactions on the employment propensity and income of migrant workers. The empirical results revealed that commute time has no significant effect on the employment propensity of migrant workers, whilst it does have a significant negative impact on the household incomes of migrant workers. The number of friends and relatives that individual migrant workers interact with also has a significant positive impact on their employment outcomes. These marginal effects vary across different cities. Rural migrant workers who reside in larger cities are more likely to have enhanced employment prospects and higher incomes. Overall, the findings suggest that both spatial mismatch and enclave effects exist in Chinese labour market. Further tests confirm the robustness of our findings.

Authors

Youqing Fan (Presenter), Western Sydney University
Youqing FAN is a lecturer in the School of Business, Western Sydney University. He obtained his Ph.D. from School of Business, Monash University. His research interests include Work and Employment Relations, Organisational Behaviour, Migration and Urban Studies. He published papers in various academic journals, such as Habitat International, International Journal of Human Resource Management, Asian Business Management, Advances in the Economic Analysis of Participatory and Labor-Managed Firms etc.

Lanlan Bi, Yunnan Minzu University
Dr Lanlan Bi is an associate professor at Yunnan Minzu University, School of Economics. She has led a number of key research projects and published widely in the area of development economics.

Mengtao Gao, Yunnan Minzu University
Prof Mengtao Gao is a professor at Yunnan Minzu University, School of Economics. He has led a number of key research projects and published widely in the area of development economics.

Chyi Lin Lee, Western Sydney University
A/Prof Chyi Lin Lee is an associate professor at Business School Western Sydney University. He has led a number of external research projects and published widely in the area of property and housing studies.

Guangbo Yin, National Bureau of Statistics Survey Office in Yunnan, China
Mr Guangbo Yin works at National Bureau of Statistics Survey Office in Yunnan, China.