Home >> Working Paper
Re-examing the effect of hukou change on migration household consumption
Read        DownLoad
TitleRe-examing the effect of hukou change on migration household consumption  
AuthorSun Wenkai and Wang Yijie  
OrganizationRenmin University of China; 
Key WordsHukou system, migration population, household consumption, double robust model 
AbstractBased on the Chinese Family Panel Studies (CFPS) two-year-panel data, this paper compares migrants who get urban hukou with migrants who remain rural hukou during two years to estimate the effect of hukou change on migration household consumption. In order to overcome self-selection and omitted variable problem, this paper adopts an approach which combines the propensity score matching method with the difference-difference method. Therefore the conclusion comes out under a quasi experimental environment. We find that compared to migrants who`s hukou status keep unchanged, the total family consumption expenditure of migrants who get urban hukou do not change significantly, while the consumption rate significantly decreased. We also test family consumption expenditure by item and find that only food expenditure and traffic communication expenditure show an increase. As to household consumption rate, the reduction is mainly due to increase of household income. The reason why short-term effect of hukou change is not significant is probably the individual consumption habit. We also estimate the long-term effect of hukou change to get the overall understanding. If we assume the migration populations completely copy the urban residents’ consumption mode in the long period, the household consumption expenditure will eventually increase about 14.8%. 
Serial NumberWP1131 
  • Institute of Economics, Chinese Academy of Social Sciences
  • Copyright Economic Research Journal
  • The uploaded articles by this website express the authors’ views, not necessarily the views of this website.
  • Perennial Legal Counsel: Lu Kang (Chong Guang Law Office)
  • ISSN 0577-9154 CN 11-1081/F Postal Distribution Code 2-25l (Domestic) M16 (Overseas)
  • ICP 10211437 (Beijng)
  • No.2,Yuetan Bei Xiaojie, Xicheng District, Beijing 100836, P. R. China
  • Phone/Fax: (+8610) 68034153