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Titel
Network effects on labor contracts of internal migrants in China / Badi H. Baltagi (Syracuse University and IZA), Ying Deng (University of International Business and Economics), Xiangjun Ma (University of International Business and Economics) ; IZA Institute of Labor Economics
VerfasserBaltagi, Badi H. In der Gemeinsamen Normdatei der DNB nachschlagen ; Deng, Ying In der Gemeinsamen Normdatei der DNB nachschlagen ; Ma, Xiangjun In der Gemeinsamen Normdatei der DNB nachschlagen
KörperschaftForschungsinstitut zur Zukunft der Arbeit In der Gemeinsamen Normdatei der DNB nachschlagen
ErschienenBonn, Germany : IZA Institute of Labor Economics, July 2017
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Elektronische Ressource
Umfang1 Online-Ressource (30 Seiten) : 1 Karte
SerieDiscussion paper ; no. 10926
URNurn:nbn:de:hbz:5:2-135865 Persistent Identifier (URN)
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Network effects on labor contracts of internal migrants in China [0.43 mb]
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Zusammenfassung

This paper studies the fact that 37 percent of the internal migrants in China do not sign a labor contract with their employers, as revealed in a nationwide survey. These contract-free jobs pay lower hourly wages, require longer weekly work hours, and provide less insurance or on-the-job training than regular jobs with contracts. We find that the co-villager networks play an important role in a migrants decision on whether to accept such insecure and irregular jobs. By employing a comprehensive nationwide survey in 2011 in the spatial autoregressive logit model, we show that the common behavior of not signing contracts in the co-villager network increases the probability that a migrant accepts a contract-free job. We provide three possible explanations on how networks influence migrants contract decisions: job referral mechanism, limited information on contract benefits, and the "mini labor union" formed among co-villagers, which substitutes for a formal contract. In the sub-sample analysis, we also find that the effects are larger for migrants whose jobs were introduced by their co-villagers, male migrants, migrants with rural Hukou, short-term migrants, and less educated migrants. The heterogeneous effects for migrants of different employer types, industries, and home provinces provide policy implications.