FRICTIONAL SORTING: THE IMPACTS OF DUAL CONSTRAINTS ON MOBILITY AND HOUSING SUPPLY IN CHINA

• 成果类型: Article
• 署名作者: Liang, Wenquan; Song, Ran; Timmins, Christopher
• 署名单位: Jinan University; National University of Singapore; University of Wisconsin System; University of Wisconsin Madison; National Bureau of Economic Research
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12724
• 发表日期: 2024
• 页码: 1747-1776
• 关键词: internal migration; PRODUCTIVITY; wages; determinants; ECONOMICS; prices; return; MODEL

摘要

Using an equilibrium sorting model and microdata from China, we evaluate the impacts of dual constraints on mobility and housing supply on workers' sorting behavior, quantifying the welfare and distributional consequences. Counterfactual simulations show that lowering migration costs associated with institutional restrictions and migrant-specific amenities would increase welfare and reduce inequality by moving workers from inland to coastal regions in China. These impacts depend on the housing supply elasticity in coastal regions. Similarly, the impacts of relaxing housing supply restrictions depend on mobility constraints. Results highlight the policy complementarities between reducing the two kinds of frictions.