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AN EMPIRICAL ANALYSIS OF HUMAN CAPITAL AND SELF-EMPLOYMENT IN CHINA BASE ON FIXED-EFFECT MODEL

摘要


This paper investigates the mechanisms that human capital influences the self-employment decisions of rural-urban migrants and urban local labors in China. Using data from the China health and nutrition survey from 1989 to 2015, the results based on characteristic analysis and fixed-effect models indicate the following: (1) the income and work time of wage work of urban local labors are better than those of rural-urban migrants; (2) the self-employed with employees is the less possible choice for highly educated rural-urban migrants due to the high risk and insufficient social security; (3) the solo-self-employed is the less possible choice for highly educated urban local labors because of low-income and long time working. These findings may be attributed to unfair employment opportunities, unequal social security, and employment discrimination between rural-urban migrants and urban local labors in China's urban areas. We suggest that increasing rural-urban migrants' nonagricultural employment skills training and vocational education and achieve wide and equal coverage of social security for rural-urban migrants in urban areas.

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