Migration patterns and migrant workers' consumption

Abstract

PurposeThe purpose of this paper is to exam the relationship between migration patterns and migrant workers' consumption and study how to upgrade the consumption of migrant workers.Design/methodology/approachBased on survey data from 3,368 migrant workers in China, this paper employs the extended linear expenditure system (ELES) model to analyze the difference of migrant workers' consumption in different migration patterns. A consumption function containing migration patterns was constructed to examine the impact of migration patterns on the consumption of migrant workers.FindingsThe consumption structure of migrant workers is in accordance with the migration theory and life cycle theory; there is a significant difference in the consumption between migrant workers of different migration patterns. Migrant workers who move to the city separated from their family members have lower levels of consumption, and the consumption structure shows the characteristics of “survival consumption,” mainly based on “food, residence and traffic.” On the contrary, migrant workers who move to the city with all their family members have higher levels of consumption, and their consumption is well structured, showing a gradual trend of upgrading and transformation.Originality/valueThis paper enriches the empirical literature on analyzing the migration patterns and their impact on migrant workers' consumption, which can help policymakers design reasonable policies of adaptation for the consumption upgrading of migrant workers.