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.

Table 4.
Monthly Earnings Differential Between Rural Migrant and 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.

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