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Cambridge Journal of Economics Advance Access originally published online on June 25, 2008
Cambridge Journal of Economics 2009 33(1):79-94; doi:10.1093/cje/ben025
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© The Author 2008. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

Segmentation or competition in China's urban labour market?

John Knight and Linda Yueh*

* University of Oxford, UK

Address for correspondence: John Knight, Department of Economics, University of Oxford, Manor Road Building, Oxford OX1 3UQ, UK; email: john.knight{at}economics.ox.ac.uk or linda.yueh{at}economics.ox.ac.uk

In China, urban residents have traditionally been protected against labour market competition from rural–urban migrants. Over the period of urban economic reform, rural–urban migration was allowed to increase in order to fill the employment gap as growth of labour demand outstripped that of the resident labour force in urban areas. However, as reforms gained pace and controls were lifted, it is plausible that competition for work between migrants and urban residents would have increased. The paper examines whether the relationship is one of segmentation or competition in the labour market. It uses attitudinal responses from two urban surveys. The urban workers who perceive competition from migrants are those who are most vulnerable. The findings are consistent with the presence of continued labour market segmentation, but suggest also that competition between the two groups is increasing.

Key Words: Labour markets • Wages • Migration • Labour market segmentation • China

JEL classifications: J30, J40

Manuscript received April 3, 2006; final version received December 10, 2007.


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