Access to local citizenship and internal migration in a developing country: Evidence from a Hukou reform in China

Abstract

This study examines the impact of access to local citizenship (i.e., the status of being local residents with hukou in the context of China) on internal migration by exploiting variations in the timing and intensity of exposure to a hukou reform across 283 Chinese cities. Using population censuses and data we collected on the adoption of the hukou reform, we find that improved access to hukou substantially increases migration. The impact is more pronounced for young and low- and medium-skilled workers. Moreover, the impact persists over the long term. The policy positively affects local labor market probably through increased domestic consumption from migrants who (are prepared to) obtain local hukou in destinations. These findings demonstrate the importance of lifting barriers to local citizenship for internal migration in China. Underlying mechanisms and competing hypotheses are also analyzed.