Internal Migration and its Socio-Economic Impacts in China: Labour Markets, Financial Decision-Making, and Life Satisfaction

Zhang, Shanfei (2024) Internal Migration and its Socio-Economic Impacts in China: Labour Markets, Financial Decision-Making, and Life Satisfaction. Doctoral thesis, University of East Anglia.

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Abstract

This thesis investigates critical socio-economic issues in contemporary China through three distinct studies, each contributing unique insights into migration, mobility, labour markets, and financial decision-making. The first chapter focuses on how internal migration affects local labour market outcomes, particularly wages in urban areas. By employing both linear and nonlinear models, the study identifies a complex relationship where a 10 p.p. increase in migrant share correlates with a 6.78% rise in local wages, especially benefiting skilled workers. Notably, the analysis uncovers a critical threshold of 27.32% migrant share, beyond which the initially negative impact on wages reverses. These results, supported by instrumental variable techniques, provide important implications for policies aimed at optimising the benefits of migration for local economies. The second chapter diverges from the migration theme to focus on household finance. It investigates how family-originated background risks influence the allocation of financial risk assets. Using data from the 2017 China Household Finance Survey (CHFS) and applying Cragg’s Double Hurdle Model, this study finds that background risks significantly affect both household participation in risky markets and the extent of risky asset holdings. The findings contribute to a deeper understanding of household financial behaviour under risk and uncertainty. The third chapter explores the reciprocal relationship between migration and life satisfaction in China. Utilising panel data from the China Family Panel Studies (CFPS) from 2012 to 2020, this study examines how life satisfaction influences migration decisions and how these decisions, in turn, affect life satisfaction. The findings reveal that lower life satisfaction increases the likelihood of migration by 29 p.p., while higher life satisfaction discourages mobility. This chapter highlights the significant role of life satisfaction as both a determinant and a consequence of migration decisions, offering nuanced insights into the well-being of migrants in rapidly urbanising regions. These chapters offer a comprehensive analysis of the socio-economic dynamics at play in contemporary China, with particular emphasis on the intersections of migration, labour markets, and financial decision-making.

Item Type:	Thesis (Doctoral)
Faculty \ School:	Faculty of Social Sciences > School of Economics
Depositing User:	Chris White
Date Deposited:	17 Feb 2025 09:13
Last Modified:	17 Feb 2025 09:13
URI:	https://ueaeprints.uea.ac.uk/id/eprint/98506
DOI:

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