Hukou-based Stratification in China's Urban Labor Market

by
LI, Jun and GU, Yanfeng
Division of Social Science, HKUST

Abstract:
Previous research on hukou-based stratification in China’s urban labor market has two limitations: one is
exclusively focusing on inequality between urban residents and rural migrants; the other is under-
considering the segmentation structure of urban economy. This paper conducts a more systematic
analysis on whether and how hukou system plays the role in determining individual’s labor market
outcomes in the segmented urban economy, by simultaneously examining two hukou attributions – the
type of registration (hukou leibie) and the place of registration (hukou suozaidi). Based on the data from
2005 1% population survey in Shanghai, the findings show that each hukou attribution has its own
effect: although urban-rural divide constitutes the basic pattern of sector entry, occupational attainment
and income inequality, local-nonlocal labors are also treated differently in the stratification process. It is
also found that “monopoly vs. non-monopoly” industrial segmentation is more capable to capture such
kind of complicated hukou-based stratification, compared with “state vs. non-state” ownership
segmentation.