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Social Identity and Inequality: The Impact of China's Hokou System

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  • Farzana Afridi

    ()

  • Sherry Xin Li

    ()

  • Yufei Ren

    ()

Abstract

They conduct an experimental study to investigate the causal impact of social identity on individuals' response to economic incentives. They focus on China‟s decades old household registration system, or the hukou institution, which categorizes citizens into urban and rural residents, and favors the former over the latter in resource allocation. Their results indicate that making individuals' hukou status salient and public significantly reduces the performance of rural migrant students on an incentivized cognitive task by 10 percent. This leads to a leftward shift of their earnings distribution – the proportion of rural migrants below the 25th earnings percentile increases significantly by almost 19 percentage points. [Working Paper No. 190]

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Paper provided by eSocialSciences in its series Working Papers with number id:3003.

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Date of creation: Oct 2010
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Handle: RePEc:ess:wpaper:id:3003

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Keywords: social identity; hukou; inequality; field experiment; China;

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References

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  30. repec:feb:artefa:0046 is not listed on IDEAS
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. If you pay peanuts . . . Part Two (self fulfilling prophecy edition): if you treat people badly, you get the worst out of them
    by Nicholas Gruen in Club Troppo on 2012-04-07 07:00:41
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Cited by:
  1. Hoff, Karla & Pandey, Priyanka, 2014. "Making up people—The effect of identity on performance in a modernizing society," Journal of Development Economics, Elsevier, vol. 106(C), pages 118-131.
  2. Uwe Dulleck & Jonas Fooken & Yumei He, 2012. "Public Policy and Individual Labor Market Discrimination: An Artefactual Field Experiment in China," QuBE Working Papers 002, QUT Business School.
  3. Wenya Cheng & John Morrow & Kitjawat Tacharoen, 2013. "Productivity As If Space Mattered: An Application to Factor Markets Across China," The School of Economics Discussion Paper Series 1320, Economics, The University of Manchester.
  4. Elaine M. Liu & Juanjuan Meng & Joseph Tao-yi Wang, 2013. "Confucianism and Preferences: Evidence from Lab Experiments in Taiwan and China," NBER Working Papers 19615, National Bureau of Economic Research, Inc.
  5. Hodaka Morita & Maroš Servátka, 2012. "Group Identity and Relation-Specific Investment: An Experimental Investigation," Working Papers in Economics 12/16, University of Canterbury, Department of Economics and Finance.
  6. Binkai Chen & Ming Lu & Ninghua Zhong, 2012. "Hukou and Consumption Heterogeneity: Migrants' Expenditure Is Depressed by Institutional Constraints in Urban China," Global COE Hi-Stat Discussion Paper Series gd11-221, Institute of Economic Research, Hitotsubashi University.
  7. Hoff, Karla & Pandey, Priyanka, 2012. "Making up people -- the effect of identity on preferences and performance in a modernizing society," Policy Research Working Paper Series 6223, The World Bank.
  8. Weng, Qian, 2013. "Session Size and its Effect on Identity Building: Evidence from a public goods experiment," Working Papers in Economics 560, University of Gothenburg, Department of Economics.
  9. Catherine Eckel & Philip Grossman & Cathleen Johnson & Angela Oliveira & Christian Rojas & Rick Wilson, 2012. "School environment and risk preferences: Experimental evidence," Journal of Risk and Uncertainty, Springer, vol. 45(3), pages 265-292, December.
  10. Daniel John Zizzo, 2012. "Inducing natural group identity: A RDP analysis," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 12-01, School of Economics, University of East Anglia, Norwich, UK..
  11. Stuart Cameron & UNICEF Innocenti Research Centre, 2012. "Education, Urban Poverty and Migration: Evidence from Bangladesh and Vietnam," Innocenti Working Papers inwopa679, UNICEF Innocenti Research Centre.

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