Abstract
According to previous studies, the Chinese revised Hukou system has not been proven to be effective in the short-term movement of the rural labor force or in controlling urban populations. In this study, we address and analyze the self-selection problem from the perspective of inflows of short-term migration from the rural labor force and the endogeneity problem in the adoption of the revised Hukou system, based on the data from China Family Panel Studies (CFPS). The study shows that the revised Hukou system adopted by Chinese local governments was significantly efficient and harmed the short-term migration decisions of the rural labor force.
Highlights
Since the Chinese government launched economic reforms in 1978, the demand for urban labor has increased with the development in the east coast cities, for example in the special economic zone (SEZ), and with the rapid economic growth in the private sector
The statistics show that the revised Hukou system remained at the same scale in 2010 and 2012, which implies that the negative outcome had been slightly expanded
In 2014, negative effects were anticipated to decrease with the expansion in coverage of the revised Hukou system
Summary
Since the Chinese government launched economic reforms in 1978, the demand for urban labor has increased with the development in the east coast cities, for example in the special economic zone (SEZ), and with the rapid economic growth in the private sector. The strict control and standardization of China’s Hukou system has led to a new spatial pattern and trend of internal migration This system has enabled China to create a huge migrant labor force, promoting the rapid development of China’s manufacturing industry and increasing urbanization [2]. The Hukou system and the self-selecting mechanism are interlocked, as local governments consider resident characteristics for system adoption, while the labor force considers the Hukou system as their long-term migration method. Adjusting self-selection problems that exist for short-term migration will not solve the endogenous problems that result from a city’s adoption of the revised Hukou system. The results of this study and discussions are provided
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