Telecommunications Externality on Migration : Evidence from Chinese Villages

This paper uses a unique natural experiment in Chinese villages to investigate whether access to telecommunications-- in particular, landline phones -- increases the likelihood of outmigration. By using regional and time variations in the installat...

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Bibliographic Details
Main Authors: Lu, Yi, Xie, Huihua, Xu, Lixin Colin
Format: Publications & Research
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
SEX
TV
WEB
Online Access:http://documents.worldbank.org/curated/en/2013/10/18359828/telecommunications-externality-migration-evidence-chinese-villages
http://hdl.handle.net/10986/21473
Description
Summary:This paper uses a unique natural experiment in Chinese villages to investigate whether access to telecommunications-- in particular, landline phones -- increases the likelihood of outmigration. By using regional and time variations in the installation of landline phones, the difference-in-differences estimation shows that access to landline phones increases the ratio of out-migrant workers by 2 percentage points, or about 50 percent of the sample mean in China. The results remain robust to a battery of validity checks. Furthermore, landline phones affect outmigration through two channels: information access to job opportunities and timely contact with left-behind family members. The findings underscore the positive migration externality of expanding telecommunications access in rural areas, especially in places where migration potential is large.