Department of Economics
National Taiwan Unversity
NBER Working Papers and Publications
|October 2017||Educational Choice, Rural-urban Migration and Economic Development|
with Ping Wang, Yin-Chi Wang, Chong Kee Yip: w23939
Observing rapid structural transformation accompanied by a continual process of rural to urban migration in many developing countries, we construct a micro founded dynamic framework to explore how important education-based migration is, as opposed to work-based migration, for economic development, urbanization and city workforce composition. We then calibrate our model to fit the data from China over the period from 1980 to 2007, a developing economy featuring not only large migration flows but major institutional reforms that may affect work and education based migration differently. We find that, although education-based migration only amounts to one-fifth of that of work-based migration, its contribution to the enhancement of per capita output is larger than that of work-based migration...