  China has been developing very fast since the beginning of the 21st century.
The net income of households has been increased a lot as well. Nonetheless,
migration from rural areas to urban sectors tends to keep a high saving rate
instead of consumption. This essay tries to use the conventional Ordinary Least
Square regression, along with the method of Instrument Variable to test the
problem of endogeneity, to discover the relationship between the saving rates
of rural households and labor migration, controlling for other characteristic
variables including having insurance, marital status, education, having
children, health conditions. The assumption is that migration contributes
positively to the dependent variable, meaning that migration could increase the
household save rates. However, the conclusion is that it is negatively with the
household save rates. All the other variables regarding education, health
conditions, marital status, insurance, and number of children are negatively
related with the household saving rates.
