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Could the Rural Immigrants be Assimilated in the Urban Labor Market?
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TitleCould the Rural Immigrants be Assimilated in the Urban Labor Market?  
AuthorLv Wei,Yang Mo,Zhu Dongming and Wang Yan  
OrganizationDongbei University of Finance and Economics; School of Economics, Shanghai University of Finance and Economics;;; 
Key WordsRural Immigrants; Wage Gap; Assimilation; Occupation Mobility; Hukou Discrimination 
AbstractThis paper investigated the wage gap between the urban workers and rural immigrants in China’s urban labor market from the perspective of economic assimilation by using the CHIPS2007 data. To deal with the self-selection bias which produced by the return immigrants, we employed Propensity Score Method to drop some immigrants who had relatively high probability to return permanently. The empirical results show that there is a huge wage gap between the immigrants and the urban workers and the gap couldn’t be eliminated by the migration time. On the average, the immigrants’ wage is lower than the urban workers’ initially. Exactly, the gap between them is about 34.11%-53.43% and could be eliminated no more than 34.11% over time. Furthermore, this paper evaluated the assimilation mechanism using the occupations transition matrixes and Brown decomposition method. We found that the obstructive factors of the assimilation as result of the immigrants’ occupation fixation and the hukou discrimination. To be exact, the immigrants’ occupational distribution was fixed and absence of mobility and promotion. Although, to some extent, the “Assimilation effect” could diminished the wage gap, it cannot eliminate the gap within the occupations which dominated by the hukou discrimination and the gap between the occupation as result of lacking of occupational vertical mobility which dominated by the lower human capital.  
Serial NumberWP1129 
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