Abstract
The problem of a shortage of migrant labor is a new development in China's coastal
provinces. We discuss the reasons for this emerging phenomenon using a conceptual
framework that extends the traditional Lewis dualistic labor market model to
incorporate a migrant labor market. We emphasize that migrant labor shortage in
China not only reflects a declining wage gap between what peasants receive and what
migrants can earn in the cities, but also the institutional legacies of the planning
era such as the
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