Wage Bargaining Power of Internal Migrant Workers

Evidence from Urban Labor Market in China

Bibliographic Data

ID16914288
AuthorsYuhong Du (0000-0002-7894-8315, Huaqiao University), Hazrul Shahiri (0000-0002-1344-6074, National University of Malaysia, corresponding author)
Year2024
Volume14
Issue2
Publication date2024-04-01
Open AccessYes
TypeARTICLE
VenueSAGE Open (JOURNAL)
Journal identifiersISSN: 2158-2440 • E-ISSN: 2158-2440
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/21582440241259934
OpenAlexW4399715111
LanguageEN
References cited21

This study analyses the wage bargaining power of employers and internal migrant workers in the urban labor market in China using a two-tiered SFA model. The findings indicate that bargaining power decreases the observed wage relative to the benchmark wage which is associated with worker’s actual productivity. The availability of migrant labor is identified to be a key variable in the wage bargaining process. This study reveals that the migrant workers who obtain jobs via informal job search methods stand in a weak bargaining position relative to those using formal search methods which is consistent with limited choices hypothesis. Additionally, the migrant workers in the manufacturing and construction industries or producing and processing occupations extract surplus nearly identical to other groups

Bargaining power · China · Collective bargaining · Demographic economics · Economic growth · Economics · Labour economics · Microeconomics · Productivity · Wage · Wage bargaining · China's Socioeconomic Reforms and Governance · Migration and Labor Dynamics · Migration, Ethnicity, and Economy

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