| ID | 147428 |
| Title Proper | Sectoral asymmetries and a social-welfare interpretation of Hukou |
| Language | ENG |
| Author | Gersovitz, Mark |
| Summary / Abstract (Note) | 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. |
| `In' analytical Note | China Economic Review Vol. 38; Apr 2016: p.108–115 |
| Journal Source | China Economic Review 2016-07 |
| Key Words | Migration ; China ; Restrictions ; Hukou |