Abstract
This paper first analyses the historical Rural-Urban migration in China and suggests 3-level reasons behind the change. Then, the model and the empirical work are used to determine the reverse migration stream – Urban- Rural Migration. The model is constructed to find the maximized wealth for individuals who experience the urban-rural migration during their life- time. The empirical framework then studies the reverse migration direction for individuals after a certain age. Overall, this paper suggests that in general, rural-urban migration is one prevailing trend for Chinese people and it greatly triggers urbanization in China. However, with the change in the personal monetary factors and living styles, some people may find hump- shaped wealth when living in urban areas. Therefore, they may leave the city to rural areas when their total wealth is maximized. From the data analysis, older people have a higher likelihood to do urban-rural migration and contribute to counterurbanization in China.
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