Abstract
The Hukou system's restriction of Chinese internal migration is controversial. This paper models internal migration in a dual economy and assesses the social welfare consequences of the Hukou system. It contrasts the effects of absolute prohibition of migration with the mere exclusion of migrants from certain services such as health care and education. Asymmetries between the rural and urban sectors mean that optimality may require different levels of utility in the two sectors. The existence of a floating population, however, is inconsistent with an optimal labor allocation.
Full Text
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call