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Wage Bargaining Power of Internal Migrant Workers: Evidence from Urban Labor Market in China

Year: 2024

Type: article

Abstract: This study analyses the wage bargaining power of employers and internal migrant workers in the urban labor market in China using a two-tiered SFA model. The findings indicate that bargaining power decreases the observed wage relative to the benchmark wage which is associated with worker’s actual productivity. The availability of migrant labor is identified to be a key variable in the wage bargaining process. This study reveals that the migrant workers who obtain jobs via informal job search methods stand in a weak bargaining position relative to those using formal search methods which is consistent with limited choices hypothesis. Additionally, the migrant workers in the manufacturing and construction industries or producing and processing occupations extract surplus nearly identical to other groups.

Source: SAGE Open

DOI: 10.1177/21582440241259934

Authors: Yuhong Du, Hazrul Shahiri

Institutions: Huaqiao University, National University of Malaysia

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: gold

Estimated APC paid: $1,600