Consistent with the descriptive results, our regression results reveal a large gap in monthly earnings between urban and rural migrant workers. As can be seen in column 1 of Table 4, when only controlling for province fixed effects, rural migrant workers are paid 22.3% less per month than urban workers (significant at the 1% level). When we add a gender control variable in column 2, we find that the magnitude of the coefficient estimate decreases, but it still suggests that rural migrant workers are paid 20.6% less per month than urban workers (significant at the 1% level). When a control for the age of workers is added into the regression equation (column 3), we again find that rural migrant workers are paid 20.6% less than urban workers.
. | Monthly Earnings in Logarithm . | |||
---|---|---|---|---|
. | (1) . | (2) . | (3) . | (4) . |
Rural migrant | −0.223*** | −0.206*** | −0.206*** | −0.028** |
(0.014) | (0.013) | (0.013) | (0.013) | |
Male | 0.287*** | 0.305*** | 0.252*** | |
(0.012) | (0.012) | (0.011) | ||
Age | 0.056*** | 0.063*** | ||
(0.004) | (0.004) | |||
Age squared | −0.001*** | −0.001*** | ||
(0.000) | (0.000) | |||
Years of schooling | 0.069*** | |||
(0.002) | ||||
Hubei | −0.216*** | −0.225*** | −0.205*** | −0.235*** |
(0.013) | (0.012) | (0.012) | (0.012) | |
R-squared | 0.059 | 0.124 | 0.149 | 0.247 |
Number of observations | 7,799 | 7,799 | 7,799 | 7,799 |
. | Monthly Earnings in Logarithm . | |||
---|---|---|---|---|
. | (1) . | (2) . | (3) . | (4) . |
Rural migrant | −0.223*** | −0.206*** | −0.206*** | −0.028** |
(0.014) | (0.013) | (0.013) | (0.013) | |
Male | 0.287*** | 0.305*** | 0.252*** | |
(0.012) | (0.012) | (0.011) | ||
Age | 0.056*** | 0.063*** | ||
(0.004) | (0.004) | |||
Age squared | −0.001*** | −0.001*** | ||
(0.000) | (0.000) | |||
Years of schooling | 0.069*** | |||
(0.002) | ||||
Hubei | −0.216*** | −0.225*** | −0.205*** | −0.235*** |
(0.013) | (0.012) | (0.012) | (0.012) | |
R-squared | 0.059 | 0.124 | 0.149 | 0.247 |
Number of observations | 7,799 | 7,799 | 7,799 | 7,799 |
Notes: Robust standard errors in parentheses. ***p < 0.01, **p < 0.05, *p < 0.1. Rural migrant workers are those who work in manufacturing (nonagriculture sector) and have a rural hukou. Monthly earnings include both wages and bonuses. Hubei is a dummy variable where 1 denotes Hubei province and 0 denotes Guangdong province.
Source: Authors’ calculations.