Social Identity and Inequality: The Impact of China's Hokou System
AbstractThey 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 Ã¢â¬â 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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social identity; hukou; inequality; field experiment; China;
Other versions of this item:
- Afridi, Farzana & Li, Sherry Xin & Ren, Yufei, 2012. "Social Identity and Inequality: The Impact of China's Hukou System," IZA Discussion Papers 6417, Institute for the Study of Labor (IZA).
- Farzana Afridi & Sherry Xin Li & Yufei Ren, 2010. "Social Identity and Inequality--The Impact of China’s Hukou System," Working papers 190, Centre for Development Economics, Delhi School of Economics.
- C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-23 (All new papers)
- NEP-DEV-2010-10-23 (Development)
- NEP-EXP-2010-10-23 (Experimental Economics)
- NEP-MIG-2010-10-23 (Economics of Human Migration)
- NEP-TRA-2010-10-23 (Transition Economics)
- NEP-URE-2010-10-23 (Urban & Real Estate Economics)
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