| Whether rural-urban migrants can survive in cities and blend into the mainstream culture is of great significance to the urbanization of China. Using panel data from the China Health and Nutrition Survey from 1993 to 2009, this paper is designed to search for evidence of neighborhood income and education effects on durables consumption among migrant households. Neighborhood effects in consumption may occur among neighbors through information sharing. Migrants' psychological factors, such as conformity and jealousy, can also result in peer pressure from neighbors. Based on the estimation results of the reduced form social interaction model, evidence of neighborhood effects is found in the ownership of air conditioners, cameras, microwave ovens and computers. Economically, the income effects from non-migrant neighbors are more influential, while the education effects within the circle of migrant households are dominant. These results have immediate policy relevance in understanding the consumption patterns of migrant workers in China. |
