The Influence Of Labor Mobility On The Wages Of Local Urban Residents

The economic vitality stimulated by labour mobility is an important reason for China’s economic miracle since the reform and opening up.But in practice there are still two voices questioning the welfare improvement brought by the labour mobility,the first sound thinks that since the reform and opening,large-scale foreign labour swarming into urban areas,taking urban jobs,reduce the wages of urban residents.The second is that the constant outflow of labour force would hinder the economic development of the outflow place,and could eventually depress the wages of t urban residents.So,for Chinese whole society,is the influence of the labor migration on the residents’ welfare a process of ―zero-sum gam‖ of the cake redistribution,or "pareto improvement" of the economic efficiency ? There are few answers to this question.It is an indispensable process to investigate the effect of labor mobility on the wages of local urban residents in both outflow and inflow area.On the basis of systematic review relevant literature at home and abroad,this paper combs out the the mechanism acted between labor inflow or outflow and local urban wage in theory,uses 2013 China’s urban residents microscopic data(CHIP2013)and manual data of urban characteristics collection,with the average temperature in January and the abnormal death rate of the population in the famine from 1959 to 1961 as the instrumental variable of the net labor inflow and outflow,comprehensively study the effects of labor flow(including net inflows and outflows)on the income of local urban residents and its mechanism by using two-stage least squares regression(2SLS),instrumental variable probit estimates and instrumental variable quantile regression(IVQR).The findings are as follows:(1)In the control of the personal traits of the labor force and city characteristics,and overcoming the problem of the endogenous conditions through the instrumental variable,both the labor net outflows or inflows have a promoting effect on the income of the local urban residents,and this results remain steady in considering the influence of such factors as the sticky wages,work time,and the extreme value wage.This means that labor mobility is a typical "pareto improvement" process with economic efficiency from a salary perspective.(2)The main mechanism of the labor inflow to promote the wage level of urban residents is the incomplete substitution effect between the urban registered residents and urban floating population.As a result,the net inflow of labor force has a stronger promoting effect on the wage of skilled laborers and high-income workers in urban areas.(3)The effective impact of net labor outflow on the supply on local labor market is the main mechanism that leads to the improvement of the wages of local urban residents because of the net outflow of labor force.The empirical research shows that the labor outflow effectively reduces the unemployment rate of non-skilled workers in the local urban areas under the circumstances that the low quality labor such as the agricultural transfer is the main body of which,and the net outflow of labor force has a obviously stronger effect on the wages of the non-skilled and low-income workers.