CHINA S RURAL MIGRATION 277 and urban residents. We can identify at least What distinguishes the Chinese disparity five reasons for these differences etween rural migrants and urban employees from that observed in other societies is not the 1. Segregated Labor Market and Occupa- wage difference, but the difference in state tionS.-Most rural migrants arrive in cities to subsidized benefits. In addition to the hidden take up marginal jobs that are characterized by and indirect subsidies through urban infra long hours, poor working conditions, low and structure mostly enjoyed by urban residents, unstable pay, and no benefits-jobs which are urban employees also receive welfare benefits unattractive to urban residents. Rural migrants associated with their employment. Whereas and local urban residents consequently partic- only about 10 percent of rural migrants report ipate in two different labor markets. A com- having any kind of medical insurance cover- parison between rural migrants and local age and less than 5 percent have retirement in white-collar occupations, as professionals, have retirement pensions. Even with erosion technical staff, leaders of government organi- in the disparity in recent years, this urban ad zations and enterprises, and office clerical vantage still holds. According to surveys con staff. Only about 3 percent of rural migrants ducted in Shanghai among those hired during work in such occupations. The proportion of the last ten years, 47 percent of urban new migrants who work as commerce and service hires have medical insurance, and 60 percent workers or workers in manufacturing indu have pension coverage tries is much higher. Such an occupational ratification is consistent with that at the na 3. Temporary Housing and residential tional level, as revealed by an analysis of the Segregation. -The single most important ur 1990 census data. Nationally, only 3 percent ban benefit, however, is housing Even urban of all long-term temporary migrant employees residents in the most densely populated me- are in professional/cadre/clerical positions, tropolis, Shanghai, still manage to enjoy a per compared with 24 percent for urban permanent capita living space(measured by construction residents( Quanhe Yang and fei guo, 1996 space)of 15.7 square meters in 1995. By com- Such a sharp difference, moreover, is not all parison, over half of all rural migrant workers due to the lack of education and the different in Shanghai live in dormitories(27 percent) age and sex composition of the migrants. Even shelters at the work site(7 percent), the work fter controlling for these factors, there re- shop itself(16 percent), and other temporary mains a threefold difference in the predicted facilities(2 percent ). The other half rent(46 probability of being in a high-level occupation percent)or report"own"housing(2.3 per- between urban permanent residents and mi- cent ). Among renters, per capita housing grants (Yang and Guo, 1996) space is about half of that of local residents 8. 2 square meters. But for what they get(only 2. Low income and Poor Benefits.-l about half of the living space of urban resi- migrants income and benefits also dents)they also pay much more than do urban hose of local urban residents by a wide local residents. The mean monthly rent for ur- gin. Excluding various in-kind incomes en- ban local renters is only 22. 5 yuan, about 3 joyed by urban residents, such as heavily percent of one employee's monthly income. subsidized housing, food provided at the workplace, childcare, transportation, and en tertainment, urban employees' cash incomes still far exceed those of rural migrants (in hired ten years Shanghai the mean difference is about 40 per- for these benefits is almo cent). This is the case even though rural mi- ployees. More than 80 percent have medical cover grants work on average 25-percent longer per more than 90 1 week(54 versus 43 hours)(Wang and zuo 2 Only half of all residents with local urban hukou(t of household registration)report renting from public ho ing. Of the other half, most have bought public housing