China & World Economy / 1–21, Vol. 25, No. 4, 2017

Consumption Structure of Migrant Worker Families in China

Guangzhong Cao, Kai Li, Ruimin Wang, Tao Liu

Abstract

This study draws on a survey of migrants in 12 cities across four major urbanizing areas in China and investigates the structure of migrant worker families’ urban and rural consumption. The results show that the structure of migrant worker families’ consumption has been dominated by survival consumption. These families tend to live frugally in cities while engaging in conspicuous consumption in their rural hometowns. The structure of migrant worker families’ consumption is mainly shaped by their income stability and wealth levels rather than their current income level. Moreover, migrant worker families with high educational levels and those who intend to settle permanently in cities are likely to allocate substantial expenditure to status and hedonic consumption and to upgrade their urban consumption structure.

Key words: China, complete urbanization, consumption structure, migrant worker
JEL codes: D12, E21, O15, R23