Why People Leave Their Rural Hometown : Evidence from 8 Provinces in China

This paper aim to clarify what motivate people to migrate from rural to urban area in China. The focus of most previous studies of migration are restricted to the wage gap between the origin and destination. However, this study uses the RUMiC (2008) data set that has individual characteristics of migrants and stayers, combined with China Statistical Yearbook data, to explore the decision making process on China’s rural to urban migration. This research provides empirical evidence that migration is a joint decision-making process characterized by the choices of migration and destination. The results also show that the living condition in hometowns pushes people to migrate. For example, the probability of moving decreases by 25% if the consumption of the rural area increases by 20% (10,000 RMB)