The Impact of Labor Mobility on Consumption Structure in Rural Households

Abstract

Rural labor migration is considered a key pathway to improving the quality and efficiency of rural household consumption structure, and it is crucial for addressing the challenges in the process of urban-rural integration. This study takes labor migration as its research perspective, exploring how it affects rural household consumption structure through both income and cost mechanisms. Based on data from the China Labor Force Dynamics Survey (CLDS), this paper conducts an empirical analysis. The study finds that rural labor migration has a positive impact on household consumption in both basic subsistence and development/enjoyment, but its impact on development/enjoyment consumption is more significant, resulting in a substantial overall improvement in household consumption structure. Further robustness analysis yields similar conclusions. This paper also selects relevant instrumental variables to discuss their impact on household subsistence consumption, with significantly positive results. Finally, heterogeneity analysis reveals that when rural laborers with lower total household income migrate for work, households are willing to spend more, which helps optimize the consumption structure. Therefore, low-income rural households possess considerable consumption potential, providing support for relevant policy recommendations.