TY  - RPRT
        AU  - Chen, Yiu Por (Vincent)
        TI  - Fiscal Decentralization, Rural Industrialization, and Undocumented Labor Mobility in Rural China (1982-87)
        PY  - 2015/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9024
        UR  - https://www.iza.org/publications/dp9024
        AB  - This paper explores the relationship between fiscal decentralization, which gave greater rural industrialization and fiscal authority to local governments, and the emergence of rural-rural undocumented inter-provincial labor migration during China's initial reform period. A Heckman model is employed to correct for the zero observation problems and to consistently estimate the labor mobility with a modified gravity equation. Given the institutional barriers, the fiscal decentralization has two contending effects on labor market integration: Local economic development promotes labor mobility, but local public goods crowding restrains the inflow of labor at the destination. The crowding effect is stronger at lower levels of government.
        KW  - local public goods
KW  - local economic development
KW  - fiscal decentralization
KW  - rural labor mobility
        ER  -