Jobs, working hours, and remuneration packages for migrants and urban residents

Abstract

In this chapter we look at the working conditions and remuneration of migrants versus incumbent urban residents in China in the 2008 wave of the RUMiCI project. We find that the average hourly compensation for an urban worker is more than double that of migrants. Inequality of non-wage compensation is higher than that of hourly wages, mainly because urban workers are much more likely to benefit from various insurance schemes than migrants. Nearly three-quarters of the hourly compensation differences can be explained by observable characteristics. Returns to education and experience are lower for the migrants. They also have less education and accumulate less experience, perchance due to the temporary nature of the migration. We find strong differences between cities. For example, total compensation in Wuxi, Hefei, Ningbo and Chengdu is roughly the same for migrants as for the equivalent urban city dweller with the same characteristics. This equal treatment is also reflected in non-wage remuneration components. Yet in Chongqing and several other cities, a migrant is paid less than half the equivalent urban city dweller. This suggests that some cities ‘compete’ for migrants whilst others do not, and it also suggests that there are many city dwellers who would be better off if they move to other cities.Australian Research Council, AusAID, IZA, Ford Foundatio