Applied Finance Project on Chinese Migrants Remittances
The STATA file china_migrants.dta contains data on selected variables for 1,431 Chinese rural migrants working in the Jinan municipality in Shandong province of China. The STATA do file china_migrants_.do should be consulted as a starting point, though some additional basic STATA commands will also be needed. The following table describes the variables in the STATA dataset:
|
Variable Name |
Variable Description |
|
remit |
A dummy variable that adopts a value of 1 if the migrant remitted money to their household of origin in rural China, and equals zero otherwise. |
|
amount |
The amount remitted to their household of origin in rural China in the last 12 months expressed in Yuan. |
|
mwage |
The monthly labour market earnings received by the migrant in the last month expressed in Yuan. |
|
female |
A dummy variable that adopts a value of 1 if the migrant is female, and equals 0 otherwise |
|
age |
The age of the migrant expressed in years. |
|
age_sq |
The square of the age of the migrant expressed in years. |
|
married |
A dummy variable that adopts a value of 1 if the migrant is married, and equals 0 otherwise. |
|
no_child |
A dummy variable that adopts a value of 1 if the migrant has no children, and equals 0 otherwise. |
|
primary |
A dummy variable that adopts a value of 1 if the migrant has primary school education or less, and equals 0 otherwise. |
|
middle |
A dummy variable that adopts a value of 1 if the migrant has middle school education, and equals 0 otherwise. |
|
senior |
A dummy variable that adopts a value of 1 if the migrant has senior school education or better, and equals 0 otherwise. |
|
card |
A dummy variable that adopts a value of 1 if the migrant has a registration card (Hukou) that permits the migrant to work legally in Jinan, and equals 0 otherwise. |
|
urban_12 |
A dummy variable that adopts a value of 1 if the migrant has worked in Jinan municipality for 12 months or less, and equals 0 otherwise. |
|
free_meal |
A dummy variable that adopts a value of 1 if the migrant’s current job provides one free meal per day, and equals 0 otherwise. |
|
medical |
A dummy variable that adopts a value of 1 if the migrant’s current job provides free medical care, and equals 0 otherwise. |
(a) Summarise the data in the first instance and comment on the characteristics of the data in this case.
(b) You could perform. some t-tests based on average differences in the probability of remitting between those with and without a registration card, and gender.
(c) You could do the same for the amount remitted.
(d) The following relationship could be specified as a starting point:
remiti = β0 + β1agei + β2age_sqi + β3femalei + β4 no_childi
+ β5urban_12i + β6cardi + β7log(mwage)I + ui [1]
where i =1,……….,1431.
This is a Linear Probability Model.
(d) The following relationship could be specified as a starting point:
amounti = β0 + β1agei + β2age_sqi + β3femalei + β4 no_childi
+ β5urban_12i + β6cardi + β7log(mwage)I + ui [2]
where i =1,……….,1431.
This would be a simple OLS regression model.
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