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Temporary Migration and Savings Rates: Evidence from China.
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- Author(s): Wen, Le1 (AUTHOR); Paudel, Krishna P.2 (AUTHOR) ; He, Qinying1 (AUTHOR)
- Source:
European Journal of Development Research. Dec2022, Vol. 34 Issue 6, p2810-2849. 40p.- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: We study the effect of temporary migration on migrants' savings rates in China. This is done by developing a simple theoretical model and conducting empirical analyses using propensity score matching and two-stage least square models; the latter addresses an endogeneity problem associated with the migration intention variable. Data used in this paper are primarily from the 2017 China Migrants Dynamic Survey. Results show that temporary migration has a significant effect on migrants' savings rates. On average, migrants with a temporary intention save 3.41% points more than their permanent counterparts. Precautionary motives, permanent income, and asset specificity are the potential mechanisms affecting savings rates. A series of robustness checks show that our results are robust. Results have implications for rural and urban development and the structuring of future social safety net programs in China. [ABSTRACT FROM AUTHOR]
- Abstract: Resume: Nous étudions l'effet de la migration temporaire sur les taux d'épargne des migrant·e·s en Chine. Nous réalisons cela en développant un modèle théorique simple et en effectuant des analyses empiriques grâce à la méthode d'appariement des scores de propension et à des modèles des moindres carrés en deux étapes ; ce dernier répond à un problème d'endogénéité associé à la variable de l'intention de migration. Les données utilisées dans cet article proviennent principalement de l'enquête dynamique sur les migrant·e·s en Chine, conduite en 2017. Les résultats montrent que la migration temporaire a un effet significatif sur le taux d'épargne des migrant·e·s. En moyenne, les migrant·e·s qui prévoient une migration temporaire épargnent 3,41 % de points de plus que leurs homologues qui migrent de façon permanente. Les motifs de précaution, la permanence des revenus et la spécificité des actifs sont les mécanismes potentiels affectant les taux d'épargne. Une série de contrôles de robustesse révèle que nos résultats sont robustes. Les résultats ont des implications pour le développement rural et urbain et pour la structuration des futurs programmes de protection sociale en Chine. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of European Journal of Development Research is the property of Palgrave Macmillan Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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