{'fraction_non_alphanumeric': 0.03268641470888662, 'fraction_numerical': 0.0, 'mean_word_length': 5.2025316455696204, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Rural-urban migrants’ remittances and wage inequality: Evidence from China

There is a link between rural-urban remittances and wage inequality. However, the existing literature sheds little light on this topic. In this study, we establish a three-sector general equilibrium model to investigate the effects of  rural-urban migrants’ remittances on wage inequality. Further, we use Chinese macroeconomic data to  calibrate the parameters and conduct analysis with numerical simulation. We find that, when rural-urban migrants raise their remittance rate, wage inequality between skilled labour and the urban formal sector remains unchanged in the sector-specific capital case but narrows in the sector-mobile capital case. Moreover, in the sector-specific case, skilled and unskilled wage inequalities, wSY and wSZ, decrease at the same rate as the urban-rural wage inequalities, wXY and wXZ, respectively. In the mobile case, however, the former declines faster than the latter.