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The purpose of this paper is to evaluate the economic impacts of China’s hukou system and propose the possible direction for future reform.

The study develops a framework to incorporate the hukou system into the economic growth model. Using prefecture city-level panel data covering 241 cities over the period 2004–2016 and applying the fixed effects and instrumental variable regression techniques, the authors investigated empirically the impacts of the hukou system on city economic growth.

The study provides three main findings. First, the city sector conditionally benefits from labour mobility deregulation that allows migrants to work in cities. Second, the hukou system has different impacts on economic growth among cities with different sizes and administrative levels. Third, to offset the costs of providing exclusive public services to the migrants, the big or high-administrative-level cities can use their high-valued hukou to attract the high-skilled migrants, but the small- or low-administrative-level cities do not have this advantage.

This study suggests that the key for further hukou system reform is how to deal with the hukou–welfare binding relationship.

The authors developed a theoretical framework and conducted an empirical analysis on the direct relationship between the hukou system and economic growth to reveal the mechanism of how does the hukou system influence the city economic growth and answer the question of why is the hukou system reform so hard in China. The framework also sheds some lights on explaining the success and failure of the hukou system reforms in the past 40 years.

The purpose of this paper is to review the process of rural labor reallocation and unfolds its growth effect through sufficiently supplying human resources, preventing diminishing return to capital, and increasing labor productivity.

The author surveys literature and statistics related to the subject to comprehensively picture the 40-year course of the shift and reallocation of agricultural surplus labor.

In the past 40 years, reforms in relevant areas have eliminated institutional barriers deterring labor mobility and allowed agricultural laborers to exit from low-productivity farming employment, migrate beyond rural-urban boundary and across regions, sectors, and ownerships, and enter higher productivity employment in non-agricultural sectors. As a result, resources allocative efficiency has been substantially improved, contributing a significant part to labor productivity growth and thus economic growth of the Chinese economy as a whole.

To sustain this source of economic growth as far as China completes its transition from upper-middle income status to high-income status, deepening reforms is urgently needed. The author provides policy suggestions for further reform.

This paper enhances people’s understanding of the Chinese economic reform and its nature of efficiency and inclusion.

The main purpose of this study was to develop and test an employability scale in a Chinese context. Moreover, the authors investigated how socioeconomic status indicators (education and occupation of parents, household income and hukou, i.e. household registration location) affect the endowment and development of adolescents' employability skills in China.

Data were collected via paper-based surveys from 1,146 vocational school students in rural and urban areas in China at two points in time one year apart. The authors developed a scale to measure employability skills in China and conducted general linear modeling to test the hypotheses.

The findings indicate that adolescents whose parents have more education, highly skilled occupations, relatively affluent household income and urban hukou are more likely to attain higher employability skills than those from lower socioeconomic status backgrounds. Moreover, adolescents with these background characteristics tend to improve their employability skills more than those without such characteristics. This suggests that social capital may further widen the inequality gap among adolescents.

The framework of employability skills focuses on the general basic transferable employability skills of vocational students. Future studies could develop measures of employability skills for college graduates and widen the measurements of social capital based on the study’s findings. The findings suggest that higher education institutions should be encouraged to integrate resources to improve education inequality between rural and urban regions to the disparity in adolescents' employability skills development.

Building on Western frameworks, the study defines and develops an employability scale in the Chinese context that can be a practical measurement tool for researchers, educators and policymakers. The authors investigated the endowment and development of employability skills in relation to social capital. Exposure to social capital tends to affect an individual's skills and capability development at an early stage, and in the long term, this calls attention to access to quality education between rural and urban youth.

The rapid urbanization of China brings in large number of migrant workers coming from rural areas. With the perspective of social integration, this study reviews the findings about economic livelihood, social integration and health related to migrant workers since China initiated economic reform. We show that (1) though the economic wellbeing of migrant workers has been improved significantly after they moved to cities, their economic standing is still lower than local residents; (2) though there is progress of social integration between migrant workers and local residents, conflicts and challenges due to the competitions in employment and the sharing of community resource are still commonly found; (3) the disadvantaged status of health is very common among migrant workers and (4) women and the new generation in migration have more disadvantages in the social transition. We suggest that issues of equal rights between migrant workers and local residents should be discussed in the future as more migrant workers intend to stay in cities for long-term.

The methodology is literature reviews based on the current studies about migrant, migration and policy. The first category of literature is the research field on China's migration and urbanization to describe the whole context of migrant workers. The second is research field on detailed issues about migrant workers and the last field is policy issues about the welfare and needs among migrant workers.

We find that (1) though the economic wellbeing of migrant workers has been improved significantly after they moved to cities, their economic standing is still lower than local residents; (2) though there are progress of social integration between migrant workers and local residents, conflicts and challenges due to the competitions in employment and the sharing of community resource are still commonly found; (3) the disadvantaged status of health is very common among migrant workers and (4) women and the new generation in migration face more disadvantages in the social transition.

There are some limitations in the current research: (1) the review focuses on the majority of migrant workers to reveal the general picture about the living, developing and rights among migrant workers, but is still lacking in dealing with some special and disadvantaged groups. (2) More international issues related to migrant workers should be discussed in the future considering that China's labor market is becoming more and more global.

First, the conclusion about the economic and social integration among migrant workers indicates that more equal welfare services, including resident services, commence services, medical services etc. should be included in the municipal managements considering that Chinese cities will be the combination of local residents and migrant residents. Second, the conclusion about the women and children indicates that the future public services targeted at the disadvantaged population should focus on migrant members due to the second generation of migrant workers will be one of the mainstream population in future China's cities.

This study gives general views on migrant workers in current China. The findings in this review conclude the main development and improvements among tens of millions of migrant workers in Chinese cities. Meanwhile, we also conclude that there are still many disadvantaged and marginalized sub-groups in migration who are suffering from less welfares and rights in urban lives. More detailed and equal rights and public services should be considered and implemented in the fast urbanization taking place.

This paper first reviews the history of social insurance policy and coverage in urban China, documenting the evolution in the coverage of pensions, medical and unemployment insurance for both local residents and migrants, and highlighting obstacles to expanding coverage. The paper then uses two waves of the China Urban Labor Survey, conducted in 2005 and 2010, to examine the correlates of social insurance participation before and after implementation of the 2008 Labor Contract Law. A higher labor tax wedge is associated with a lower probability that local employed residents participate in social insurance programs, but is not associated with participation of wage-earning migrants, who are more likely to be dissuaded by fragmentation of the social insurance system. The existing gender gap in social insurance coverage is explained by differences in coverage across industrial sectors and firm ownership classes in which men and women work.

The purpose of this paper is to examine spending pattern of Chinese migrant workers from rural regions to urban cities from a social identity perspective, which stems from Chinese Hukou system (household registry system). This study proposes a theoretical model for consumer utility function (a combination of economic utility and social utility) which takes into account the choice of social identification.

This study focusses on the influence of rural and urban identification on consumption patterns of Chinese migrant workers. These assumptions were verified based on a survey with 650 samples in Shanghai, one of the most developed cities in China.

Results indicate that affirmative social identification has a significantly positive effect on the level of consumption for migrant workers. High level of rural identification has a more significant impact than urban identification on survival consumption including food, medicine and family support. On the other hand, high level of urban identification has a more significant impact than rural identification on development consumption including education for children, training and recreation. Besides, there are significant interaction effects between income and identity on consumption, which confirms the identity effect on classical economic model and is in line with identity economics’ arguments.

This study outlines the importance of social identity in both economics and marketing domains and proposes a theoretical model which advances understanding of a model on similar lines proposed by Akerlof and Kranton’s (2000) and Benjamin et al. (2010). Empirical tests with Chinese migrant workers’ data present that their consumption patterns are influenced by their level of social identifications.

Many countries have experienced, or are experiencing, urbanization. One such example is China. Even though the large‐scale rural‐urban migration seems chaotic on the surface, there are certain underlying forces driving individual decisions. The purpose of this paper is to provide some understanding of the relationship between human capital, migration, and occupational choices.

The paper starts with an overlapping generations model. Human capital plays various roles across different occupations – it does not affect the income of farmers, it affects income of workers linearly, and it has increasing returns in rural non‐farm business. The paper then derives income profiles for individuals with heterogeneous human capital, and finds the human capital thresholds of occupations. The paper calibrates the model to China, and simulates the model to answer two questions: how does an improving human capital distribution affect rural wages, quantities of migrants and return migrants? How does a fast‐growing urban wage rate affect rural wages, quantities of migrants and return migrants?

First, depending on the initial human capital level, policies aiming to enhance human capital may have different impacts on migration. If the initial human capital level is low, these policies will yield more permanent migrants; on the contrary, if the initial human capital is at a relatively high level, then a shrinking permanent migrant class with a growing entrepreneur class can be expected. This results in an inverted U‐shaped relation between the initial human capital level and the size of the permanent migrant class. Second, even though the non‐farm business of return migrants helps raise rural wages, the income inequality between rural and urban areas is not eliminated and migration is persistent. Third, borrowing constraints limit the size of rural non‐farm businesses and slow down the development of rural industry. The fourth and final point is that, migration costs discourage labor mobility and reduce the quantities of both permanent migrants and entrepreneurs.

This is an original paper on this subject.

The purpose of this paper is to explore the factors that influence migrant workers' household registration transfer willingness at both individual and urban levels and to provide empirical evidence on adjusting the household registration system to accommodate economic development and migrant workers' imbalances.

This paper adopts a hierarchical nonlinear model and examines individual and urban influencing factors of migrant workers' household registration transfer willingness, based on the data from China Migrants Dynamic Survey (CMDS) and the Urban Statistical Yearbooks.

This paper shows that: (1) multi-factors, such as age, education, marital status, household demographics, industry and migrant workers' contract coverage, have significant effects on migrant workers' household registration transfer willingness; (2) The urban public service equalization indicators, such as regional economic, educational resources, medical care and ecological quality, have significant effects on migrant workers' willingness to transfer household registration; (3) The heterogeneity of migrant workers' willingness to transfer household registration is significant in central, eastern and western China.

The authors provide a fresh perspective on population migration research in China and other countries worldwide based on the pull–push migration theory, which incorporates both individual and macro (urban) factors, enabling a comprehensive examination of the factors influencing household registration transfer willingness. This hierarchical ideology and approach (hierarchical nonlinear model) could be extended to investigate the influencing factors of various other human intentions and behaviors.

Micro approaches (individual perspective) have dominated existing studies examining the factors influencing migrant workers' household registration transfer willingness. The authors combine individual and urban perspectives and adopt a more comprehensive hierarchical nonlinear model to extend the empirical evidence and provide theoretical explanations for the above issues.

The purpose of this paper is to take occupation opportunity as an indicator to examine the impact of hukou on labor market segmentation in China. It estimates the scale of the impact and identifies the way of the impact. Especially, the paper takes hukou uniform reform as an example and tests whether hukou reforms helped in eliminating labor market segmentation.

The data sets this paper adopted are the 2000 Census and 2005 Mini Census data in China. Linear model and Probit model are used in estimating hukou's impact. Oaxaca/Blinder decomposition is used in decomposing the difference in occupation distribution among hukou statuses. DID evaluation method is used in comparing the region with hukou uniform reform and the region without to capture the influence of the reform.

The result shows that occupation segmentation based on hukou significantly exists in urban labor market. Hukou uniform reform improved the occupation opportunity of local rural workers but migrating rural workers were somehow crowded out. Migrating urban workers did not benefit from the reform. To conclude these, the reform released employment segmentation between rural and urban workers within the reformed region but strengthened the segmentation between the local residents and outcomers which could influence future labor source and scale in reformed area.

The paper evaluates the hukou uniform reform's impact on the labor market using an empirical way for the first time and makes concrete policy recommendations based on these findings.

This paper aims to examine the effect of China’s unique household registration system (hukou) on stock market participation.

In an effort to estimate the effect of hukou on households' financial behavior, we draw on data from China Family Panel Studies (CFPS) and use probit model and tobit model to test the effect of hukou on households stock market participation.

The results are with strong interpretative power over the limited participation of stock market in China-investors living in urban areas with urban hukou are more likely to participate in stock markets and allocate a larger fraction of financial assets to stocks and remarkably robust to a battery of robustness checks. The dual structure of social security caused by the household registration system could explain this result. Furthermore, marriage plays such a role of integrating social resources attached to hukou that only the marriage of individuals with urban hukou could significantly promote households' participation in the stock market. For married families, a household in which both husband and wife have urban hukou has a greater possibility to invest in stocks relative to those with rural hukou.

This paper contributes to the literature in two ways. First, much literature focuses on the stock market limited participation puzzle and gives explanations from the perspectives of individual heterogeneity and financial markets. This paper examines the effect of hukou. Such an idea is instructive to some developing countries where residents are treated differently because of the institutional reason. Second, the effects we find are economically meaningful. Our estimates indicate that medical insurance attached to hukou can explain almost 58% of the impact of hukou, which suggests that the key to reforming China's current household registration system is to make welfare separate from hukou. Moreover, homogamy based on hukou widens the gap of households' risky assets, which provides a new view to understand the income gap in the cities of China and the heterogeneous effect of marriage on stock market participation.