1. Introduction
Since the reform and opening up in the late 1970s, the remarkable economic achievements in China can be attributed largely to the “demographic dividend”; that is, the economic benefits of the demographic structural transition (an increase in the labor participation ratio and a decline in the dependence ratio). However, as the tendency of population ageing and low birth rates become increasingly severe, most studies have identified the Lewis’ turning point in the Chinese labor market [
1,
2,
3]. According to data from the seventh National Population Census, the total fertility ratio in China decreased to 1.3 (significantly below replacement fertility levels) in 2020, and the annual number of new births also hit a new low of 12 million. In addition, the proportion of the population aged 65 years and older is 13.5%, which is very close to the standard of deep aging (14%). As a result of population ageing and having fewer children, the sustainability of China’s “demographic dividend” is facing severe challenges.
A demographic dividend can accrue at two different points over the age structural transition period [
4]. The first demographic dividend flows from an increase in the productivity and employment of the labor force during the “window of opportunity”. The second dividend accrues alongside an ageing population, which leads to improved health and longevity and smaller family size, making saving easier and more attractive [
5,
6,
7]. However, under a situation where the first demographic dividend ceases to exist, how can we avoid the vacuum dividend between the two demographic dividends? There is a general agreement that migration is an immediate solution to such demographic problems. Studies based on Europe find that migration is not effective at preventing the age structural transition and demographic deficit, but it is useful to alleviate it [
8,
9,
10,
11,
12,
13], and can at very high levels, avert a future decline in the total population (United Nations 2000). Similarly, Chinese scholars believe that if the government takes measures to enhance its capacity to change industries and move rural workers from the first baby boom generation between different regions, the labor shortage would be alleviated to some extent. Reducing labor mobility between rural–urban regions and industries may hinder the reallocation of production resources, which leads to low productivity growth and high labor costs. If the free movement of labor between industries and regions can be achieved, it is possible to continue to utilize the surplus labor in urban and rural areas, thus extending the first “demographic dividend” to ensure the successful transition to the second “demographic dividend”—achieving the sustainability of the demographic dividend. Simply put, guiding the free flow of labor is crucial to the sustainability of China’s demographic dividend and economic development. Given that some institutional obstacles hindering the social mobility of labor and talents are removed, beneath the appearance of “disorder” such as “localization” and “reflow” of population mobility, what are the determinants of internal migration?
Studying the determinants of labor migration has always been of interest to scholars. [
14,
15]. During the development period of labor migration theory, there emerged two important theories: the “push–pull theory” and the “human capital investment theory”. The “push–pull theory” was first proposed by Ravenstein [
3] in his article “The Law of Migration” and was systematized and applied by Bogue [
16]. The core idea is that the migration decision is influenced by both the push factors of the original area and the pull factors of the migratory destination. Many scholars have partially modified or supplemented the “push–pull theory” since then. For instance, Lee [
17] took the lead in incorporating migration barriers, such as migration distance, physical barriers, linguistic and cultural differences, and migrants’ value judgments on these barriers, into the influencing factor set of migration decision-making, which gave birth to the “multi-factor push–pull theory”. In addition, with the emergence and popularization of “human capital investment theory”, the individual factors of migrants have been paid more attention during the procedure of migration decision making. Based on the concept of human capital investment, the direct motivation of migration is to reallocate individual skills in different places to maximize net economic returns. These factors, such as migrants’ identity characteristics, their position in the life cycle, post-migration employment status, age, family and migration networks, all have impacts on the migration decision of potential migrants [
18,
19,
20,
21,
22,
23,
24]. In addition, factors such as migrant fertility status, the age of their children, and whether or not their children move with them, can also affect the migration decision [
25,
26,
27]. In addition to the wage gap between urban and rural areas, the investment in human capital for children, especially education investment, is the main driver of migration for parents [
28].
Parents will invest in their children to ensure that their children have a better income and livelihood level in the future and will seek to maximize their economic utility. Therefore, the regional factors that affect children’s future income will inevitably influence the migration decisions made by their parents or families [
29]. In other words, while seeking to maximize their own direct economic benefits, factors that affect the expected income of families and future generations can also directly influence the migration decisions of migrants, especially those with children.
Therefore, given the national condition whereby few children are being born, cities with more employment opportunities, particularly those with a high degree of upward intergenerational mobility, would be more attractive for migrants. The level of intergenerational mobility reveals the degree of connection between children and their parents in political, economic, and social terms, which directly influences parents’ migration decision. Numerous studies have confirmed the “two-way” effect between intergenerational mobility and migration [
30,
31]. In general, parental migration increases intergenerational mobility, including upward intergenerational mobility [
27,
30,
32,
33,
34,
35]. That is, parents’ investment in human capital for their children through migration directly affects their children’s expected income and intergenerational mobility in adulthood [
36], and then influences the regional intergenerational mobility level of the migration destination. Conversely, the spatial heterogeneity of regional intergenerational mobility levels [
37] can also contribute to labor migration, reducing the willingness of labor to migrate out from cities with a high level of intergenerational mobility and enhancing the crowding-out effect on labor in cities with low levels of intergenerational mobility.
The spatial heterogeneity of intergenerational mobility implies spatial inequality in development opportunities for children, thus encouraging parents who focus on their children’s human capital investment and future income to migrate to cities with higher levels of upward intergenerational mobility [
29]. The heterogeneity in the level of intergenerational mobility between the origin residence and migration destination creates both the push factor and the pull factor in the migration process; that is, a high level of intergenerational mobility is a pull factor for inflow, while a low degree of intergenerational mobility is a push factor for emigration. The spatial heterogeneity of intergenerational mobility levels is an effective unification of the “push–pull theory” and the “human capital investment theory” and reflects the considerations of potential migrants based on their own and their family’s permanent benefits. Combing the domestic and foreign studies that are most relevant to this paper, the existing literature can be broadly divided into three branches: (1) Based on individual or household income data from developed countries to construct a regional intergenerational mobility index and analyze its impacts on labor migration. (2) Based on household samples from developed countries to analyze the impacts of parent’s migration direction on children’s expected income. (3) Based on analyzing the impacts of regional intergenerational mobility level on emigration in developing countries. Compared with previous studies, the innovation points of this paper are described as follows: (1) We used the education attainment information of individuals in the 1% sample survey of the National Population Census (2015) to calculate the occupational educational intensity index to rank occupations and construct a regional intergenerational occupational mobility index, which is an effective solution to the data shortage in developing countries. (2) We combined the push factor, pull factor, and “emotional factor” from the perspectives of immigration and emigration to analyze the general law of migration, thus correcting the bias in the existing literature that is incurred by conflating or separating push factors and pull factors [
29,
38,
39]. (3) We adopt various regression approaches, such as Logit, IV-probit, IV-2SLS and heteroskedasticity based IV, to empirically analyze the motivations and influencing factors of migration decision-making, which may contribute to research on migration in developing countries. Our principal finding is that increasing the degree of intergenerational occupational mobility has a significant “agglomeration effect” on registered and mobile labors; that is, reducing the emigration willingness of household registered labor and increasing the immigration probability of labor from cities with lower degrees of intergenerational occupational mobility.
2. Theoretical Hypotheses
This paper refers to the theoretical model of Borjas [
40] to analyze the impacts of regional intergenerational occupational mobility level on labor migration. The key conclusion of this model is that the heterogeneity among the levels of regional intergenerational skill transmission can influence the migration decision of parents. It is assumed that the transfer of skills from generation
t − 1 to generation
t (
t > 1) follows Equations (1) and (2).
where
represents the skill level of the
tth generation of migrants in country
j (
j =
a or
b); the parameter
is the level of intergenerational skill transmission in country
j, which takes values between 0 and 1;
represents the unobservable factors in country
j, which affect the skill level of the
tth generation of migrants. The random variable
has zero mean and finite variance, is distributed independently of skills, and is uncorrelated over time. If
, it means that there is no heterogeneity in the levels of intergenerational skill transmission between two countries, and the migration does not occur. If
, the potential migrants who are concerned about the incomes of future generations and the cumulative incomes of the family will migrate between the two countries; that is, the heterogeneity in the levels of intergenerational skill transmission between two countries creates the pull factor and push factor simultaneously. Skilled workers prefer to migrate to a destination country with a higher level of intergenerational skill transmission, while unskilled labor is willing to migrate to countries with lower levels of intergenerational skill transmission, as this decision will not result in a large welfare loss.
The impact of spatial heterogeneity in the levels of intergenerational skill transmission on labor migration behavior lies in the spatial heterogeneity of the expected economic benefits. Thus, skilled workers prefer to move to a location where skills are easily transferred to their children to safeguard the income of their children in the future. The influence of spatial heterogeneity on regional intergenerational skill transfer levels on migration behaviors at different skill levels confirms that labor migration decisions are influenced by regional non-economic factors. Based on the above analysis, this paper proposes the first hypothesis: spatial heterogeneity in regional occupational intergenerational mobility levels affects the migration decisions of migrants, especially those who are concerned with children and the family’s cumulative generational gains.
In this paper, the definition of regional intergenerational occupational mobility level is absolute regional intergenerational occupational mobility level, i.e., the average occupational percentile that children whose parents have an occupational rank below 50% of the occupational distribution can obtain. A higher level of regional intergenerational occupational mobility means a greater scope for career advancement and more employment opportunities for immigrants’ children, allowing them to achieve an even higher occupational position than that of their parents, thus maximizing the sustained or cumulative intergenerational earnings of the family. Therefore, this paper proposes a second hypothesis: migrants follow a general migration law and move from cities with lower intergenerational occupational mobility levels to cities with higher ones.
5. Discussion
Among the existing literature, the articles most related to this paper can be broadly divided into three branches: (1) Constructing regional intergenerational mobility based on individual or household income data in developed countries. Some scholars have calculated the intergenerational elasticity (IGE) between father and son based on American household income data as an indicator of regional relative intergenerational mobility [
52,
53], which is made into a coefficient by regressing the log child income with the log parent income. Others have determined the income percentile rank of children (in their age cohorts) and their fathers’ income percentile rank in the national income distribution and indicated intergenerational mobility as the slope of the rank–rank relationship [
29,
37,
42]. (2) Population migration vs. occupational mobility. Differences in employment opportunities and career restrictions between regions usually force individuals to develop their careers through migration [
30]. The results of a lagged regression model based on the 1970 occupation access data show that groups that have recently migrated are more likely to realize the upward occupational mobility than non-migrants [
35]. In addition, Blau and Duncan [
30] found that migrant workers would achieve higher occupational ranks and experience higher upward mobility relative to non-migrants. (3) Migration and intergenerational occupational mobility. Long and Ferrie [
32] investigated rural–urban migration in Britain in the 19th century and found that the intergenerational occupational mobility of migrants in 1881 increased compared with that of their fathers in 1851. In addition, parents’ migration improves intergenerational mobility and even upward intergenerational mobility [
30,
32,
33,
34]. This is because parental migration affects human capital investment in offspring and directly influences offspring’s income and intergenerational mobility in adulthood [
36]. As far as we know, studies measuring the level of intergenerational mobility in developing countries and its impact on population migration are few and far between, and our study is an important complement and innovation to such studies.
A major challenge in studying population migration and intergenerational mobility in developing countries lies in obtaining accurate income data. In China, for example, in the absence of income data, some scholars have used the survey information of respondents’ own social status and their family social status at age 14 to construct data on the social status of fathers and sons based on data from the China Labor Dynamics Survey and have used this as a benchmark for measuring regional intergenerational mobility [
26]. Due to the strong subjectivity of family social status information, the regional intergenerational mobility index measured by this method needs to be further tested, given that intergenerational occupational change has also been used as a measure of mobility and is superior to income change in some respects [
32]. In addition, the occupation’s weighted average educational attainment is a better proxy for a person’s stable economic status and is closely linked to other socioeconomic characteristics that better explain the phenomenon of intergenerational occupational mobility over time than income [
54]. Therefore, this paper constructs an occupational education intensity index based on individual education information instead of income, and ranks occupations based on this index to measure the intergenerational occupational mobility, which can more truly reflect the intergenerational mobility level in cities.
By connecting “push factors”, ”pull factors” and “third factors”, we analyze the general law of migration from the “two-way” mobility behavior of immigration and emigration and correct the bias of existing studies that equate or separate push and pull factors [
29,
38,
39]. Based on Chinese data, studies that equate or separate pull and push factors find that high levels of intergenerational mobility reduce the probability of individuals emigrating; conversely, low levels of intergenerational mobility have a crowding-out effect on people [
24]. However, the regression results of this paper find that there are three effects of increasing the level of intergenerational occupational mobility on migration: (1) It significantly reduces the likelihood of the emigration of local laborers. (2) It enhances the immigration attractiveness of cities for mobile laborers, especially those from cities with lower levels of intergenerational occupational mobility. (3) It has a crowding out effect on some laborers, such as rural laborers, high educated laborers, and rural highly educated laborers. Labor migration follows the general law of moving from cities with a low degree of intergenerational occupational mobility to cities with high intergenerational occupational mobility levels. The results of this paper reveal the crowding out effect of high intergenerational mobility on some specific local labor, which has not been found in previous articles. It thus has stronger explanatory power for some phenomena that exist in the development of China’s mobile population, such as “inland–coastal migration”, “reflow”, “tide of migrant workers” and so on.
Using logit, IV-probit, traditional IV, heteroscedasticity IV and other regression methods, this paper analyzes the influencing factors of individual migration from a microscopic perspective and provides new methods for the study of labor migration decision factors in developing countries. The empirical methods of existing studies mainly include the semiparametric maximum score estimation method [
29], multinomial logit regression method [
55], and OLS regression method [
26]. In this paper, we establish the dummy variable of individual willingness to migrate and analyze the impact of regional intergenerational occupational mobility on population migration using the logit regression method. In the treatment of the model endogeneity problem, traditional IV and IV based on heteroskedasticity produce similar results in empirical analyses [
50]. We further use the approach of Lewbel [
50], heteroskedasticity-based IVs, to test the robustness of the regression results of the traditional IV.
The findings of this paper fill a gap in the research field of demographic migration factors, highlighting the significant impact of non-economic factors on population mobility. The analysis of the feasibility of using a mobile labor force to compensate for the lack of demographic dividend during the demographic dividend transition from the perspective of city-level intergenerational occupational mobility has positive implications for guiding the achievement of both SDGs 3 (ensuring healthy lifestyles and promoting the well-being of people of all ages) and 8 (promoting sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all). However, the article does not have further in-depth theoretical discussions. Future research direction should focus on exploring the mechanisms that guide the free movement of labor to achieve a sustainable demographic dividend.
Mechanistic analyses have found that improving a city’s comprehensive incremental economic competitiveness, i.e., its ability to create current and future benefits, can effectively increase the “agglomeration effect” of a city on local labor. In contradiction to existing research, however, it is generally accepted that enhanced investment in education and health is critical for fully reaping the benefits of a demographic window of opportunity [
5]. However, the findings of this paper show that increasing the absolute education returns in cities increases to some extent the probability of individuals moving out, i.e., accelerating the disappearance of the demographic dividend. However, following the migration law, laborers’ migration to cities with higher absolute education returns instead increases the overall welfare of society, i.e., the demographic dividend is more fully unleashed. The government played an important role in the process of cultivating and utilizing the first demographic dividend by promoting high-quality economic development and increasing spending on education to improve the comprehensive skills of the labor force.
Over the period of transition from the first demographic dividend to the second demographic dividend, looking through the disordered migration phenomenon to discover migration patterns and to guide the orderly flow of migrants is an effective solution to create a sustained demographic dividend and realize balanced and stable economic growth. To avoid the vacuum between two demographic dividends, policymakers should first break down the institutional barriers that prevent the free flow of labor, and guide the flow of labor from rural to urban areas, from coastal to inland areas, from agriculture to manufacturing industries, and from low value-added industries to high value-added industries, so as to further release the first demographic dividend. Secondly, policy makers should improve the human capital of all age groups, especially that of the elderly population, by developing education and training; improving the medical security system to extend the life expectancy of the elderly population; and appropriately delaying the retirement time to increase the labor force participation rate of the elderly population based on China’s current “aging” population. In this way, the first demographic dividend and the second demographic dividend can be successfully bridged.