This paper investigates the determinants of employment choice of rural migrant workers across state-owned enterprises (SOEs) and various subtypes of non-state owned enterprises (non-SOEs) by taking into account of the unobservable characteristics that link the choice to migrate with the choice of employer. Using pooled cross-section data for 1995 and 2002, the results indicate that the decisions for migration and the choice of employment are related, suggesting that estimating employment choices without considering migration status leads to biased estimates. We find that both higher paid wages and broader pension benefits are major determinants of employment choice. Of these, pension benefits have a larger impact than high-level wages in increasing the employment probability for either type of enterprise.
- employment choice
- rural migrants