Chinese Journal of Sociology ›› 2013, Vol. 33 ›› Issue (1): 113-135.

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Ethnic Enclaves Revisited:Effects on Earnings of Migrant Workers in Urban China

ZHANG Chunni, Department of Sociology， The Chinese University of Hong Kong XIE Yu， Department of Sociology, University of Michigan   

  1. ZHANG Chunni, Department of Sociology， The Chinese University of Hong Kong XIE Yu， Department of Sociology, University of Michigan
  • Online:2013-01-20 Published:2013-01-20
  • Contact: ZHANG Chunni E-mail: chunnizhang@gmail.com
  • About author:ZHANG Chunni, Department of Sociology， The Chinese University of Hong Kong XIE Yu， Department of Sociology, University of Michigan，“Thousand Talents Program” Professor at Peking University

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Abstract:

Among ruraltourban migrants, migrant workers from the same native place tend to concentrate in the same workplace. When this concentration is sufficiently dense, we may consider that place an enclave. According to the enclave literature of U.S. immigrants, working in places with the same ethnic groups may improve the economic wellbeing of immigrants. This study follows the same reasoning to test whether working with fellow provincials will increase the earnings of migrant workers in urban China. When we discuss the relationship between enclaves and pay, researchers should be aware of the impact of preexisting differences between the migrant workers who participate in enclaves from those who don’t. This preexisting selective heterogeneity may cause a biased estimation of the enclave effect if just based on a simple comparison of the earnings between enclave workers and nonenclave workers. Furthermore, there is heterogeneity in the enclave effects on the earnings among different groups of migrant workers. Therefore, a single estimate of the enclave effect may not be sufficient in capturing the variability in the impact of enclave participation of different groups. Considering heterogeneity, this study puts two questions to empirical test. First, among migrants with the same enclave participation propensity, do migrants who actually work in enclave firms earn more than migrants who work in nonenclave places? Second, what type of migrant workers gain the highest benefits from enclave participation? Using data from a 2010 survey of migrant workers in the Pearl River Delta and the Yangzi River Delta, we matched enclave workers and nonenclave workers on their enclave participation propensity and compared their earnings. We found a positive average earnings return to enclave participation, although this effect was smaller than what had been found before propensity matching. Moreover, migrants with a higher enclave participation propensity benefited more from actual enclave participation than those with a low propensity.

Key words: ruraltourban migration, migrant workers, lacalistic enclave, propensity score matching, heterogeneous treatment effect model