NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Pei-Ju Liao

Department of Economics
National Taiwan Unversity
Taipei, Taiwan
Tel: 886-2-3366-8371

E-Mail: pjliao@ntu.edu.tw

NBER Working Papers and Publications

October 2017Educational 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...
 
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