This paper contributes to the assessment of China’s rural labor markets. According to our data, the increase in off-farm employment that China experienced during the 1980s and 1990s continued during the 2000s. Our analysis shows that migration has become the most prevalent off-farm activity, although the destination of migrants is shifting from outside of one’s province to destinations closer to home. The present paper finds that large shares of male and female individuals, especially those under 40 years, are working off the farm. These findings represent an important contribution to the labor economics field. First, the results of the present paper reveal that the labor transition from the agricultural sector to the non-agricultural sector for key segments of China’s rural labor force is nearly complete. Second, although a large share of China’s rural labor force work in agriculture, most of these workers are older men and women (and likely would not be willing to take low-wage, labor-intensive jobs). Third, the rising unskilled wage rate in China is partially a result of the tightening of the labor force in the young age cohorts. Finally, due to factors associated with the one child policy and other demographic transition forces, successive age cohorts will continue to fall in absolute number in the coming decade. Assuming China’s growth continues, we expect to see further wage increases since it will take higher wages to coax more workers to work off the farm.

Using novel data on 50,000 Norwegian men, we study the effect of wealth on the probability of internal or international migration during the Age of Mass Migration (1850–1913), a time when the US maintained an open border to European immigrants. We do so by exploiting variation in parental wealth and in expected inheritance by birth order, gender composition of siblings, and region. We find that wealth discouraged migration in this era, suggesting that the poor could be more likely to move if migration restrictions were lifted today. We discuss the implications of these historical findings to developing countries.

The goal of this article was to document and explain the gap in educational achievement between Han and minority students in primary schools in western China. In our survey of 300 schools in Shaanxi, Gansu, and Qinghai provinces (involving nearly 21,000 fourth- and fifth-grade students), we find large differences in achievement on standardized exams between Han and minority students. On average, minority students perform 0.25 SD lower in math and 0.22 SD lower in Chinese. Most strikingly, minority students who do not generally speak Mandarin as their primary language score 0.62 SD lower than Han in math and 0.65 SD lower than Han in Chinese.

Using decomposition methods pioneered by Oaxaca (1973) and Blinder (1973), we find that most of the achievement gap between Han and minority students with no alternative ethnic language can be explained by differences in endowments of student, family, and school characteristics. Of these, differences in students and family characteristics appear to contribute the most to differences in achievement. Little of the gap between Han students and non-Mandarin minority students (Salar and Tibetan in our sample), however, can be explained by endowment differences. Comparing these students only to Han students in the same schools significantly reduces the size of the achievement gap, yet a difference of more than 0.2 SD persists. None of this remaining gap is explained by differences in endowments. Although several explanations are possible, we believe that a likely explanation is that the ability of students to learn may be hindered by difficulty comprehending instruction in Mandarin (given that no schools in our sample provided instruction or texts in minority languages). While we cannot say with certainty why these students may benefit less from a given amount of schooling inputs, our analysis suggests that teachers play a significant role.