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Expropriation with Hukou Change: Evidence from a Quasi-Natural Experiment

Author

Listed:
  • Akgüç, Mehtap

    (European Trade Union Institute (ETUI))

  • Liu, Xingfei

    (University of Alberta)

  • Tani, Massimiliano

    (University of New South Wales)

Abstract

We study the labor market outcomes of males aged 18-60 obtaining an urban hukou as a result of land expropriation across a number of provinces in China. Using 2008 and 2009 RUMiC data pooling urban, rural and migrant samples, we find that those obtaining an urban hukou have better labour market outcomes than rural stayers and migrants, and close the gap vis-Ã -vis native urbanites. We also find that children of families experiencing a hukou change due to expropriation have similar investment in human capital as the children of native urban hukou holders. The results confirm the hukou status as a strong economic determinant of labor market outcomes and as a source of inequality. Differences in educational investment, regardless of the differences in parental background, appear however to disappear for the children of families experiencing expropriation, suggesting that leveling the hukou status amongst children in an urban area may be a first step towards reducing intergenerational inequality.

Suggested Citation

  • Akgüç, Mehtap & Liu, Xingfei & Tani, Massimiliano, 2014. "Expropriation with Hukou Change: Evidence from a Quasi-Natural Experiment," IZA Discussion Papers 8689, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8689
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    References listed on IDEAS

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    Cited by:

    1. Marta Bengoa & Christopher Rick, 2020. "Chinese Hukou Policy and Rural-to-Urban Migrants’ Health: Evidence from Matching Methods," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 46(2), pages 224-259, April.
    2. Arnaud Dupuy, 2021. "Migration in China: To work or to wed?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(4), pages 393-415, June.
    3. Massimiliano Tani, 2017. "Hukou Changes and Subjective Well-Being in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(1), pages 47-61, May.
    4. Akgüç, Mehtap & Liu, Xingfei & Tani, Massimiliano & Zimmermann, Klaus F., 2016. "Risk attitudes and migration," China Economic Review, Elsevier, vol. 37(C), pages 166-176.
    5. Tani, Massimiliano, 2015. "Hukou Changes and Subjective Well-Being," IZA Discussion Papers 9451, Institute of Labor Economics (IZA).
    6. Jason Hung & Mark Ramsden, 2021. "The Application of Human Capital Theory and Educational Signalling Theory to Explain Parental Influences on the Chinese Population’s Social Mobility Opportunities," Social Sciences, MDPI, vol. 10(10), pages 1-7, September.

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    More about this item

    Keywords

    quasi-experiment; expropriation; China; labour markets; economic reform;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • H13 - Public Economics - - Structure and Scope of Government - - - Economics of Eminent Domain; Expropriation; Nationalization
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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