An analysis on the endowment effect and regional effect of floating population’s employment income

SUN Meng1 XU Shicun1

(1.Northeast Asia Research Center of Jilin University, Changchun, Jilin, China 130012)

【Abstract】The employment income of floating population is affected by the combination of individual endowment factors and regional economic factors. This paper proves this fact by using the hierarchical linear models, and reveals the structural adjustment effect of regional characteristics on the average income level and individual endowment return rate. The results show that more than 10% of the total income difference of China’s floating population comes from regional differences, mainly due to the structural adjustment of urbanization rate, industrial relevance, financial scale, economic openness, public service level, and policy control. Among them, migrants in the areas with high economic openness and high public service levels are more likely to receive higher income from the spillover effects of the two. The age of the floating population and the employment income show an inverted U-shaped curve. The adjustment mechanism of the regional characteristic factors is mainly to change the steepness of the age return curve. Years of education are the most important factor that influences the income of the floating population. Most of the regional characteristics have a significant positive adjustment effect on their rate of return. Due to the intensified competition in the labor market, the advantage of obtaining high incomes for those with longer inflows is not obvious. Gender discrimination and household registration discrimination significantly affect the employment income of migrants, and many factors in developed regions have adjustment effects that further strengthen the impact of discrimination.

【Keywords】 floating population; income gap; regional effect; hierarchical linear models;


【Funds】 National Social Science Fund of China (14BRK035)

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This Article


CN: 22-1017/C

Vol 40, No. 06, Pages 52-61

November 2018


Article Outline


  • 1 introduction
  • 2 Literature review
  • 3 Research design
  • 4 Analysis of empirical results
  • 5 Conclusion and reflection
  • References