Abstract

ABSTRACT While there is a large literature on the determinants of generalized trust, few studies have explored the impact of internal migration and attempted to tackle potential endogeneity issues. Using nationally representative data from the latest five rounds of the China General Society Survey, this paper estimates the impact of internal migration on generalized trust by exploiting arguably exogenous, historical changes in the GDP growth target set by the government and the share of migrants at the county level. We find evidence of a significant negative impact of internal migration on generalized trust. We also investigate the moderating role of Internet use, and find that whilst Internet use significantly attenuates the negative impact on generalized trust of internal migration, this moderating effect is much stronger for urban-to-urban migrants than it is for rural-to-urban migrants. The results further indicate that internal migration in China has led to the deterioration of subjective well-being, changing perceptions of fairness, increased likelihood of downward social mobility, and deterioration in social relations, which we interpret as potential mechanisms behind our findings.

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