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Migrants and Firms: Evidence from China

Author

Listed:
  • Imbert, Clement

    (University of Warwick and JPAL)

  • Seror, Marlon

    (University of Bristol, DIAL, Institut Convergences Migrations)

  • Zylberberg, Yanos

    (Chinese University of Hong Kong)

  • Zhang, Yifan

    (University of Bristol, CESifo, the Alan Turing Institute)

Abstract
How does rural-urban migration shape urban production in developing countries? We use longitudinal data on Chinese manufacturing firms between 2001 and 2006, and exploit exogenous variation in rural-urban migration induced by agricultural price shocks for identification. We find that, when immigration increases, manufacturing production becomes more labor-intensive in the short run. In the longer run, firms innovate less, move away from capital-intensive technologies, and adopt final products that use low-skilled labor more intensively. We develop a model with endogenous technological choice, which rationalizes these findings, and we estimate the effect of migration on factor productivity and factor allocation across firms. JEL codes: D24; J23; J61; O15

Suggested Citation

  • Imbert, Clement & Seror, Marlon & Zylberberg, Yanos & Zhang, Yifan, 2020. "Migrants and Firms: Evidence from China," The Warwick Economics Research Paper Series (TWERPS) 1254, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1254
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    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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