The Household Registration Threshold and Peasant Worker Decision-Making over Acquiring Urban Hukou in China

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The Household Registration Threshold and Peasant Worker Decision‑Making over Acquiring Urban Hukou in China Chong Lu1   · Ailin Wu1 Accepted: 1 June 2020 © Springer Nature B.V. 2020

Abstract This paper investigates the effects of the household registration threshold on peasant worker decision-making over acquiring urban hukou using 2258 peasant workers’ data in China. The results demonstrate that the household registration threshold will significantly increase the peasant workers’ willingness to obtain urban hukou, and increase the peasant workers’ probability of acquiring the urban hukou of home province cities. In addition, China’s household registration threshold plays a more significant role in metropolitan cities and eastern cities than in small and medium-sized cities and midwestern cities in terms of its impact on peasant workers’ willingness to acquire urban hukou, and their urban hukou location intention. The degree of social integration’s mediating effect is significant. Firstly, the degree of social integration reduces the positive effect of the household registration threshold for peasant workers acquiring urban hukou. Next, the degree of social integration influences peasant workers choosing urban hukou in the work city. To achieve improvement in the new urbanisation level of the household registration population, it is necessary to promote the integration of peasant workers and residents and decrease the household registration threshold for peasant workers’ work cities. Keywords  Household registration threshold · Urban hukou · Peasant workers · Decisionmaking · New urbanisation · China JEL Classification  F22 · M13 · R11

1 Introduction The number of peasant workers in China reached 288.36 million in 2018 (National Bureau of statistics of China 2018).1 The hukou system is a dual system of citizenship that stipulates an individual as ‘‘rural’’ or ‘‘urban’’ based on his or her parents’ place of origin 1  For details, please refer to: 2018 Statistical Bulletin of National Economic and Social Development: www.stats​.gov.cn/tjsj/zxfb/20190​2/t2019​0228_16512​65.html.

* Chong Lu [email protected] 1



School of Public Finance and Taxation Research / Institute of Economics and Management, Southwest University of Finance and Economics, 555 Liutai Avenue, WenJiang District, Chengdu 611130, China

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C. Lu, A. Wu

(Chan and Buckingham 2008). In this system, peasant workers are deprived of all urban rights and privileges, including housing subsidies, and their children are deprived of education rights in public schools (Lui 2018). In recent years, great efforts have been made to reform the household registration system, which has been regarded as the central factor underlying the unsettled nature of the floating rural migrant population in many Chinese cities. Reformation of the policy, it is hoped, would help the floating population of peasant workers to settle down in the cities and become fully integrated into China’s urbanisation process (Zhu 2007). The key to the sustainable dev