Factors Affecting Neighbourhood Preferences for Income and Hukou Segregation: Evidence from Shanghai, China

Abstract

Abstract: This article analyses the factors that affect neighbourhood preferences for income and hukou segregation by using an ordered probit model on a sample of 482 residents in Shanghai. It finds that the overall preference for residential segregation among respondents is not very strong. However, for high-income groups with Shanghai hukou, their income level and household size increase their tendency to be reluctant to have neighbours with different income levels or hukou status. The effects of various influencing factors differ among other groups with different hukou and income levels. Neighbourhood relationship and xiaoqu quality are two important factors that affect all types of neighbourhood preferences for residential segregation. The results of this study show that developing mixed residential areas, improving inclusiveness over residential segregation, narrowing the income gap and reducing education inequality may reduce the probability of neighbourhoods accepting residential segregation.