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City economic development, housing availability, and migrants' settlement intentions: Evidence from China

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  • Mengkai Chen
  • Yidong Wu
  • Guiwen Liu
  • Xianzhu Wang

Abstract

The slow growth of the permanently settled migrants in host cities poses new challenges for the sustainability of China's future urbanization. Given the growing importance of homeownership, this paper clarifies migrants' settlement intentions into three mutually exclusive patterns, including de facto permanent settlement intention through homeownership, long‐term temporary settlement intention and short‐term temporary settlement intention. Based on matched micro‐ and macro‐level data, this paper examines the influence of city economic development and housing prices on these three patterns. The results suggest that economic development exhibits an attractive effect on migrants' settlement intentions for both earning money and for making a life while housing price weakens rural migrants' de facto permanent settlement intention. We also highlight the effect of the Housing Provident Fund (HPF), the most important housing financial policy in China, on settlement intention, and the results suggest that the HPF serves as an option to help migrants achieve permanent settlement through housing availability. The findings can explain the mixed results of previous research and provide policy references for sustainable urbanization in China.

Suggested Citation

  • Mengkai Chen & Yidong Wu & Guiwen Liu & Xianzhu Wang, 2020. "City economic development, housing availability, and migrants' settlement intentions: Evidence from China," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1239-1258, September.
    • Handle: RePEc:bla:growch:v:51:y:2020:i:3:p:1239-1258
    DOI: 10.1111/grow.12416
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    5. Dongshui Xie & Caiquan Bai & Hong Yan & Weixuan Song, 2022. "Legal land transfer rights, labor migration and urban–rural income disparity: Evidence from the implementation of China's Rural Land Contracting Law in 2003," Growth and Change, Wiley Blackwell, vol. 53(3), pages 1457-1482, September.
    6. Xinxian Wang & Jun He & Tim Futing Liao & Gaoxiang Gu, 2023. "Does Air Pollution Influence the Settlement Intention of the Floating Population in China? Individual Heterogeneity and City Characteristics," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    7. Zerong Wang & Guochang Zhao, 2022. "Cultural integration among non‐Han migrants in urban China: To what extent does intermarriage matter?," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1490-1512, December.
    8. Yidong Wu & Yuanyuan Zha & Mengyuan Ge & Hao Sun & Honghong Gui, 2022. "The Impact of Urban Health Care on Migrants’ Settlement Intention: Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    9. Xin Lao & Zhihao Zhao & Hengyu Gu, 2022. "Revisiting Hukou Transfer Intentions Among Floating Population in Chinese Cities: Spatial Differences and Multi-Level Determinants," SAGE Open, , vol. 12(2), pages 21582440221, May.
    10. Song, Zisheng, 2021. "The capitalization of school quality in rents in the Beijing housing market: A propensity score method," Working Paper Series 21/7, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.

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