Promoting urban integration is the key to improving the efficiency of labor allocation in developing countries and promoting coordinated regional development. Using the data of the migrants' observation sample in 2012–2017 released by China Migrants Dynamic Survey, this paper draws on theories related to urban integration and labor migration to study the urban integration status, intention of settlement and residence in China's agricultural household labor force in depth, as well as the correlation between the two. The study finds a significant decline in the intention of settlement and a gradual increase in the intention of residence among the migrants. The empirical regressions suggest that good urban integration, especially psychological integration, mainly contributes to their intention of settlement and residence, while the intention of residence is also more influenced by the social and economic integration dimensions. The mediating effect tests reveal that income level and housing stability are key pathways to economic integration, public medical participation and accessibility to medical services are key pathways to health integration, social status and local attachment are key pathways to social integration, and identity affiliation and psychological assimilation are key pathways to psychological integration. Future urbanization in developing countries requires not only further reform of the household registration system but also government, business, and social organizations at all levels to reduce the difficulties of urban integration in economic, health, social, and psychological aspects, enhance the degree of urban integration of the migrants, increase the intention of the migrants to settle and stay in different places and avoid the "migratory bird" migration of labor between regions. The "migratory bird" migration between regions is avoided.
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