Employment And Income Of Migrant Workers Based On Labor Market Segmentation Perspective Study

It's an universal phenomenon that rural migrants suffer the discrimination of both employment and wages in urban labor market. Theoretical and empirical analysis shows that apart from the restrictions of human capital, discrimination is the main reason for the differences of employment and wages between rural migrants and urban citizens.For too long there exists serious segmentation in China's labor market because of institutional factors and social factors. Urban-rural segmentation and ownership segmentation receive wide attention. While with the deepening of economic restructuring, labor market segmentation in China has occurred profound changes: industry segmentation is increasingly clear, mainly manifested in the monopoly industries and competitive industries segmentation in urban labor market; urban-rural segmentation is in the weakening, but institutional implications still play the role; regional segmentation has became a leading force, some academics have suggested an integration framework to research migrant population, including the contents of double segmentation model integrating urban-rural divide and regional segmentation, and three groups test of local- migrant population.At present, the research on employment and wages of migrant workers mainly concentrated in rural migrants. With the deepening of labor-market reforms, though the main body of migrant population is still rural migrants and their families, more and more people with other urban HUKOU (called urban migrants) also became an important part of migrant population. So we define the research objects as three groups: rural migrants, urban migrants and local citizens. Since rural migrants suffer the discrimination of both employment and wages comparing with local citizens, then how about urban migrants? Do they suffer the discrimination, comparing with local citizens? Do they have advantage, comparing with rural migrants?Based on the data from the surveys conducted in 4 big Chinese cities in 2008, this paper analyzes the differences of employment and wages among rural migrants, urban migrants and local citizens, measures the extent of discrimination in urban labor market. Besides, it analyzes other determinants that affect the income of migrant workers. Overall conclusions were as follows:A. Rural migrants suffer the discrimination of both employment and wages, comparing either with local citizens or with urban migrants. Moreover, rural migrants only suffer the urban-rural discrimination, comparing with urban migrants; but they suffer higher degree of discrimination comparing with local citizens, including urban-rural discrimination and regional discrimination.B. Urban migrants suffer the discrimination of employment, but not the discrimination of wages, comparing with local citizens. The average wage level and occupational wage level of urban migrants are both higher than local citizens, and the difference can be all explained by the human capital difference between two groups.C. The discrimination of wages suffered by rural migrants is mainly due to unexplained differences in occupational attainments, in other words, the wages difference between rural migrants and citizens is mainly caused by the restrictions on occupational attainments of rural migrants. Moreover, endowment difference of human capital and social capital is also the important determinants that affect the wages difference between rural migrants and other groups.D. The system of regional segmentation reduces the likelihood of migrant workers' participation in urban social insurance programs, and enjoying the labor rights and public service offered by local government. So the actual income level of migrant workers will be reduced. The empirical analysis shows that the legacy of urban-rural divide and the system of regional segmentation are the important determinants that affect the participation rate of social insurance programs, meanwhile, contracts and education also play a important role in participation rate of social insurance programs.The last chapter concludes with policy suggestions, including deepening the reform of the household registration system, improving labor market development and the quality of rural migrants, accelerating the equalization of basic public services.