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ID: 163516

Labor mobility barriers and rural-urban migration in transitional China / WANG, Sophie Xuefei

Wang, Sophie Xuefei	Journal Article
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Rural-urban migration is an inherent component of urbanization and economic development. This paper develops a model of labor migration, focusing on the role of selection effects in determining labor market outcomes. The model is then calibrated to quantify the effects of China's labor market reforms on labor market outcomes, outputs, and income. Results find that the removal of legal labor mobility constraints and lowering of migration costs benefit the overall economy in terms of GDP and total welfare, but rural-urban migration also causes a brain drain in rural areas, and decreases agricultural production while inflating the price of agricultural products. In terms of inequality, migration narrows the urban-rural labor income gap, but when considering capital income, migration actually increases urban-rural inequality.

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ID: 143365

Population growth and the environmental Kuznets curve / Wang, Sophie Xuefei; Fu, Yu Benjamin ; Zhang, Zhe George

Wang, Sophie Xuefei	Article
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This paper provides a specific application of the environmental Kuznets curve (EKC) in order to explain the effect of population growth on the environment. The main purpose is contributing to enhance the connection between theoretical and empirical analysis. We develop an overlapping generations (OLG) model that featured with an inverted U-shaped relationship between pollution emission and income and we examine the effect of population growth on this relationship. Simulations illustrate the model's predictions that positive population growth makes the EKC steeper and have higher peak, but it does not fundamentally change the pollution–income relationship. The econometric analysis finds evidence supporting our model's predictions using Chinese data at the province level.

Key Words

Pollution ; Environmental Kuznets Curve ; Population Growth ; Fixed Effects ; Overlapping Generations Model

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