The Political Economy of Migration in China
نویسندگان
چکیده
Large di erences in hourly compensation exist between the natives (urban hukou holders) and rural to urban migrants of the Chinese cities, a third of which cannot be explained by any variation in observable characteristics. This paper attempts to explain the di erences using a Tiebout-esque political economy model of migration in which rents are appropriated from the migrants by the rent-seeking bureaucrats and redistributed among the politically in uential groupsthe urban hukou holders. We derive conditions under which the competition between regions for rents tend to lead to a bias against migrants and those that induce better treatment than their urban counterparts with the same characteristics.
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