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Figure 3. Sources of China’s Economic Growth in 1978-1997Technical Advance3%Labor Allocation20%Capital29%Human Capital24%Labour24%Source: Cai, Fang, and Wang Dewen, “The Sustainability of China’s Economic Growth and theContribution of Labor.” Journal of Economic Research, No. 10 1999.This pattern will continue. Johnson (1999) has argued that transfers acrosslabor sectors over the next three decades could contribute as much astwo or three percentage points to China’s annual economic growth if thebarriers to migration are gradually lifted, and if rural and urban wages arenearly equalized for individuals with similar levels of human capital. Aconservative estimate (Taylor and Martin 1998) suggests that the share ofagricultural employment will decrease by 3.1 percentage points with each10 percent growth of GNP, if China follows a similar pattern of migrationfrom agricultural to non-agricultural sectors as other developing countries.Rapid urbanization in the next twenty years will release a huge number ofrural laborers from agriculture and from rural areas. The transformationand decline of agricultural employment, and the reallocation of laborit generates, will have a profound impact on the rural economy and oneconomic development as a whole.254In a recent study, the World Bank (2005) divided the Chinese economyinto four sectors – agriculture, urban industry, urban services and ruralnon-agriculture – and investigated their impact on economic growth bysimulating the reallocation of labor from the low-productivity agriculturalsectors to high-productivity sectors. This analysis found that, despitebecoming more integrated over the reform period, China’s labor marketis still significantly fragmented across regions and across sectors. Thisfragmentation is reinforced by the remains of the hukou system, by limitedaccess for migrants to social services, and the highly uneven quality ofpublic services. If China takes measures to abolish the segregation of goodsand factors markets, including labor, the gains from market integrationcould be huge.
Table 4. Estimated Contribution of the Transfer of Agricultural Labor to GDP Growth (%)Share of labor transfer 1% 5% 10%Changes in GDP frommoving labor out ofagriculture0.7% 3.3% 6.4%Changes in GDP frommoving labor out ofRural to Urban areas0.5% 2.5% 5.0%East 0.3% 1.6% 3.1%Central 0.6% 2.9% 5.7%West 0.9% 4.2% 8.2%Northeast 0.4% 1.8% 3.5%Source: World Bank, “Integration of National Product and Factor Markets: Economic Benefits andPolicy Recommendations,” Report No. 31973-CHA 2005.Using 2001 as a baseline (Table 4), the simulation showed that moving 1percent of the labor force out of the agricultural sector would lead to a .7percent growth in GDP from labor reallocation. If 10 percent of the laborforce moved out of the agricultural sector, GDP would grow by 6.4 percent.Because of the difference in the marginal productivity of labor acrosssectors and regions, policy simulations also show that facilitating labormarketmobility and integration not only improves economic efficiencybut also enhances equity. For example, the gains from the reallocation oflabor are much higher in the western and central regions than in the easternand northeastern regions. With a 10 percent movement of labor, GDP in thewestern and central regions would grow by 8.2 and 5.7 percent, comparedto 3.5 and 3.1 percent for the northeast and eastern regions, respectively.According to neoclassical economic theory, increased labor mobility andrural–urban migration should narrow regional and rural–urban disparities,but in fact an opposite effect has been observed since the 1990s. Cai andWang (2003) incorporated the variable of marketization into a gravitymodel and found that market-oriented reform has created an institutionalenvironment that favours labor mobility and influences the direction ofrural to urban migration. Using a similar method, Lin et al. (2004) alsofound that migration has become more responsive to regional disparities. 1The fact that increasing mobility has not reduced income inequality ismainly due to the unfinished reform of the hukou system and to otherfactors that continue to enlarge regional disparity. Whalley and Zhang(2004) introduced the hukou system into a simple CGE (ComputableGeneral Equilibrium model) model and found that when restrictions on2551The elasticity of migration to income disparity rose from 0.197 during the 1985 to 1990 period to0.595 during the 1995 to 2000 period.
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The opinions expressed in the repor
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Table of ContentsForeword1 Migratio
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Foreword
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UN recorded that 61 million migrant
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about this and other programmes. Se
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Introduction
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overseas ethnic markets; and the wa
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labor migration. This narrower topi
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narrowing income inequalities withi
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and 2004 has increased the urban po
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Connecting Internaland Internationa
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it comes to questions of migration
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internal and international migratio
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the larger cities. British ships we
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states. At present, as part of our
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36and one on international migratio
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perspective 3 that gives methodolog
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commercial, industrial and service
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taken place in migration flows. The
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to what was left of the original en
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sought refuge in Lima. It was not p
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husband who sought refuge and work
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that take place between migrants an
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to the flows of goods, resources an
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migration and close to Huancayo) or
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In some cases, families would regul
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Furthermore, the precise compositio
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This suggests that, instead of aimi
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Brynes, D.M.2003 Driving the State:
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1984 Miners, Peasants and Entrepren
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Werbner, P.1990 The Migration Proce
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Genealogy 1: Jiménez Family in 197
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Since the 1990s, there has been a b
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migrant receiving areas, 2 but focu
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well as discussing some of the cons
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carried to Ghana by migrants. 40 pe
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Table 2. Cost (in Euro) of Formal a
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home countries, for example, throug
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These insurance events can constitu
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Having people collect similar data
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people they knew. In fact, some of
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For migration research, this means
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ReferencesAppadurai, A.1996 Moderni
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Glick Schiller, N., and G. Fouron19
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Marcus, G.1995 “Ethnography in/of
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Portes, A., and J. DeWind2004 “A
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Stark, O., and D. Bloom1985 “The
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AppendixTable A.1. Two-country Tran
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initially entails high costs and ri
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To our knowledge, no study has esti
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2.1 Remittances and Income in Rural
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with its neat correspondence to the
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let z > 0 denote the predetermined
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Table 3. Gini Decomposition by Inco
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Table 4b. Gini Decomposition by Inc
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3.2 Effects of Migrant Remittances
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4. ConclusionsOur findings using na
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Knowles, J.C., and R.B. Anker1981
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Taylor, J.E.1992 “Remittances and
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124Table 2. Rural Mexico Household
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Central Region45Percentage of Villa
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128Figure 3. Relationship between P
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7Labor Market Flooding? Migrant Des
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Reibel (1997); David Card (2001); a
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The net immigration rate can be tak
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is S 0. It establishes an equilibri
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consequence a highly elastic supply
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in the populous fourteen states of
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out were both at work in this case
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Figure 7 identifies what we call
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Figure 9. Total Net In-Migration an
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Figure 10. Dynamic Economy ModelFig
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6. ConclusionThe dynamic and open e
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ReferencesAbowd, J.M., and R. Freem
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1999 “Historical perspectives on
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Hatton, T., and J.G. Williamson1998
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White, M.J. and Y. Imai1994 “The
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seasonal basis, to areas with more
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for agricultural labor were 15 and
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3. Why People MoveThe decision to m
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producers are facing heavy losses a
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in Mumbai, which capitalizes on peo
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In conclusion, migration can bring
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is also being experienced in many r
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ReferencesBal Kumar, K.C.2003 “Mi
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Lipton, M.1980 “Migration from ru
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Shylendra, H.S., and P. Thomas1995
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182Able-bodied men.Women migrateonl
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Majority of (ST)Baiga and Ghondsmig
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Single caste villageof (OBC) Dhimar
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9A Socio-Cultural Perspective on Mi
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of households reported having at le
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Drawing on these perspectives, I ar
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migration tend to imitate the behav
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What is presented below is therefor
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ate of exchange and was thus sent t
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which was an important consideratio
Page 205 and 206: some migrants had started chitties,
Page 207 and 208: The extended family constituted a c
Page 209 and 210: much individuals had “locked up i
Page 211 and 212: edistribution were enforced through
Page 213 and 214: and the definition of status in eac
Page 215 and 216: perceived, the status-seeking activ
Page 217 and 218: Engelbrektsson, U.1978 The force of
Page 219 and 220: Parry, J. and M. Bloch1989 “Intro
Page 221 and 222: 10Migrant Workers’ Remittances an
Page 223 and 224: in labor migration emerged after, a
Page 225 and 226: husband and wife, four daughters an
Page 227 and 228: (Table 3). In the central and weste
Page 229 and 230: Table 5. Composition of Rural House
Page 231 and 232: Figure 3. Rural households’ Net I
Page 233 and 234: schistosomiasis, etc. This decline
Page 235 and 236: of them deposit the money in a bank
Page 237 and 238: to train new rural migrants in the
Page 239 and 240: Figure 4. Per Capita Temittance in
Page 241 and 242: ReferencesBai Nansheng et al.2002
Page 243 and 244: Lu Mai et al.2002 “Zhongguo nongc
Page 245: Xinhuanet2002 “Woguo Zhongxibu la
Page 248 and 249: agriculture (Cook 1999), producing
Page 250 and 251: evenue (MR) minus the marginal cost
Page 252 and 253: Before reform, the annual quota of
Page 254 and 255: Table 2 Regional Distribution of In
Page 258 and 259: migration are removed, all wage and
Page 260 and 261: urban-biased policies persisted, pr
Page 262 and 263: eform. Under the hukou system, Chin
Page 264 and 265: The institutional barriers faced by
Page 266 and 267: ecause of the rapid migration of th
Page 268 and 269: Migrant workers have hardly any opp
Page 270 and 271: ReferencesAu, Chun-Chung, and Verno
Page 272 and 273: Lin, Justin, Gewei Wang, and Yaohui
Page 275 and 276: 12International Migration and Devel
Page 277 and 278: 2. BackgroundThe recent rise in int
Page 279 and 280: of remittances: self-employment, a
Page 281 and 282: Given the size of recent emigration
Page 283 and 284: 5. Remittances: An OverviewTable 1
Page 285 and 286: interpret. Some of it may be caused
Page 287 and 288: 8. A Decision to Repatriate MoneyIn
Page 289 and 290: emittances in the year prior to the
Page 291 and 292: fourth one, Xiamen, is in Fujian Pr
Page 293 and 294: ReferencesAdelman, I., J.E. Taylor,
Page 295 and 296: Massey, D.1988 “International mig
Page 297 and 298: AppendixTable 1. Village-Level Remi
Page 299 and 300: Table 4. Logistic Regression Models
Page 305 and 306: 13Remittances in the Latin American
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to anti-money laundering and suspic
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Finally, mulas may be sporadic trav
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has left from countries in Western
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Table 2: Remittances and Key Econom
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Source: National Money Transmitters
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One way this redistributive effect
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Managua reported having a relative
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America have a higher rate of havin
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Table 9 Frequency of Immigrant Trav
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Guyana offers an interesting exampl
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In addition to exports of these goo
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Hemisphere. Figure 7 refers to the
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alternatives. Five years ago, it wa
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concentration is pronounced, innova
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emittance recipients have a higher
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AppendixData Methodology on Pricing
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Fagen, P., and M. Bump2005 “Remit
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2003 Receptores de remesas en Ecuad
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14A Framework for Linking and Compa
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to jobs, savings, and networks that
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were expanding. That “flooding”
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ural families to repay debts, satis
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ut case studies, including that of
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would do well to examine how variou
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Carter and Sutch challenge the argu
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networks combine internal and inter
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4. Policy ImplicationsWhat implicat
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government should improve migrant w
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challenge for development practitio
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community members could help to cla
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itself). While research and analysi
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