Abstract

China has created a dual hukou system to modernize and manage rural-urban migration. The system limited the mobility of most Chinese people and limited the migration of rural peasants. In 1978, the demand for labor grew rapidly and the rules governing migration, including the hukou system, were loosened to encourage resettlement. The creation of a semi-capitalist market system in 1991 further stimulated labor inflows and forced liberalization of some aspects of registration policies, and by 2014, in response to continued growth, the Chinese government introduced a unified hukou system to ensure equality between rural and urban residents. ... In this brief overview, we look at reforms and argue that the hukou system can play an important role in China's development.

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