Modeling migration barriers in a two-sector framework: A welfare analysis of the hukou reform in China |
| |
| Institution: | 1. Cornell University, USA;2. IZA, Germany;3. School of Economics, Renmin University of China, China;1. School of Sociology, Huazhong University of Science and Technology, Wuhan 430074, PR China;2. School of Insurance and Economics, University of International Business and Economics, Beijing 100029, PR China;3. Department of Public Administration, Southwestern University of Finance and Economics, Chengdou 610074, PR China;4. School of Social Development and Public Policy, China Institute of Health, Beijing Normal University, Beijing 100875, PR China;1. School of Management and Economics, Beijing Institute of Technology, Beijing, China;2. Department of Geography, Planning and International Development, Centre for Urban Studies, University of Amsterdam, Amsterdam, the Netherlands;3. School of Public Administration and Policy, Renmin University of China, Beijing, China |
| |
| Abstract: | The present paper constructs a two-sector labor market model for China featuring endogenous internal labor mobility and heterogeneous costs of migration induced by the Chinese household registration system (hukou). The main novelty of our model is to divide migrants into those with more family responsibilities and those with fewer to explain the empirical fact that almost all young people with rural hukou have migrated to cities, while people who stay in the rural area are older and have more family responsibilities. We conduct two policy experiments using the model: one experiment concerned with reducing costs of living for younger migrants and the other for older migrants. The main results are that the first policy would unambiguously increase social welfare, while the reduced-cost policy for older migrants would reduce poverty and inequality although some urban natives may experience a wage reduction. |
| |
| Keywords: | Segmented labor markets Migration barriers Costs of migration Welfare analysis Hukou I3 J2 O1 R1 |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
