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Population adjustments in response to local demand shifts in China

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  • Luo, Dongdong
  • Xing, Chunbing

Abstract

In this paper, we use two nationally representative datasets to examine the population adjustment of demographic groups in response to regional demand shifts in urban China between 2000 and 2005. Using an instrumental variable strategy, we find that young and less educated workers are more responsive to demand shifts than old and educated workers, and that the population with agricultural Hukou status is more responsive to demand shifts than the population with non-agricultural Hukou status. The population with agricultural Hukou status and less educated workers also respond to demand shifts by adjusting their working hours to a larger extent. Our results suggest that China's Hukou system prevents the mobility of urban residents more than it prevents the mobility of rural residents. We propose that Hukou reform should not only abolish the agricultural versus non-agricultural division, but also change the decentralized (local vs. non-local) feature of the system.

Suggested Citation

  • Luo, Dongdong & Xing, Chunbing, 2016. "Population adjustments in response to local demand shifts in China," Journal of Housing Economics, Elsevier, vol. 33(C), pages 101-114.
    • Handle: RePEc:eee:jhouse:v:33:y:2016:i:c:p:101-114
    DOI: 10.1016/j.jhe.2016.05.001
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    Cited by:

    1. Shi Li & ShanshanWu & Chunbing Xing, 2018. "Education Development and Wage Inequality in Urban China," Asian Economic Papers, MIT Press, vol. 17(2), pages 140-151, Summer.
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    3. Jiantao Zhou & Eddie Chi‐Man Hui, 2022. "The hukou system and selective internal migration in China," Papers in Regional Science, Wiley Blackwell, vol. 101(2), pages 461-482, April.
    4. Niu, Dongxiao & Sun, Weizeng & Zheng, Siqi, 2021. "The role of informal housing in lowering China’s urbanization costs," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    5. Ding, Xiaozhou, 2021. "College education and internal migration in China," China Economic Review, Elsevier, vol. 69(C).

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    More about this item

    Keywords

    Local demand shift; Population adjustment; Hukou; Urban China;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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