JACIII Vol.27 No.6 pp. 1045-1055
doi: 10.20965/jaciii.2023.p1045

Research Paper:

Effect of Urban Household Registration Controls on Labor Mismatch in China

Shangfeng Zhang, Ming Yi, Shisi Li, Yu Zhang, Jinyan Ye, and Wei Chen

College of Statistics, Zhejiang Gongshang University
18 Xuezheng Street, Xiasha Education Park, Hangzhou, Zhejiang 310018, China

April 11, 2023
May 15, 2023
November 20, 2023
household registration system, labor mismatch, resource allocation efficiency, dynamic panel

This study examines the effect of the degree of household registration control on labor mismatch in China. Based on Chinese urban panel data, we construct a dynamic panel model to empirically examine the effect of the degree of household registration control on labor mismatch in China. The study finds that labor mismatch relatively exists in all regions of China, which differ significantly. Moreover, liberalizing the household registration system in cities with under- and over-allocated labor force can reduce and aggravate the degree of local labor mismatch, and improve and reduce resource allocation efficiency, respectively. This study uses the labor distortion coefficient to replace the original dependent variable, and the labor mismatch coefficient. The authors further conduct a robustness test using the system generalized moment estimation method. These results are consistent. The implication of this study is that, in the context of China’s shift from high-speed to high-quality development, local governments should tailor their household registration system reform programs to the local resource allocation situation to improve the degree of labor mismatch in China, to optimize resource allocation, and to promote economic transformation.

Cite this article as:
S. Zhang, M. Yi, S. Li, Y. Zhang, J. Ye, and W. Chen, “Effect of Urban Household Registration Controls on Labor Mismatch in China,” J. Adv. Comput. Intell. Intell. Inform., Vol.27 No.6, pp. 1045-1055, 2023.
Data files:
  1. [1] R. Yang, “Study on the total factor productivity of Chinese manufacturing enterprises,” Economic Research J., Vol.50, No.2, pp. 61-74, 2015 (in Chinese).
  2. [2] J.-H. Bai and Y.-Y. Liu, “Can outward foreign direct investment improve the resource misallocation of China,” China Industrial Economics, Vol.2018, No.1, pp. 60-78, 2018 (in Chinese).
  3. [3] T.-Y. Wang, “Study on the motivation and obstruction of the reform of China’s household registration system,” Ph.D. Thesis, Zhejiang University, 2016 (in Chinese).
  4. [4] Y.-N. Zou, “The endogenous logic and policy choice of household registration system reform,” Economist, Vol.2015, No.4, pp. 48-53, 2015 (in Chinese).
  5. [5] G.-M. Xian and Q. Xu, “Do labor market distortions promote or inhibit FDI inflows,” The J. of World Economy, Vol.36, No.9, pp. 25-48, 2013 (in Chinese).
  6. [6] J. Sun, “Changes to Hukou discrimination in China’s labor market: Employment and wages of rural migrant workers,” Economic Research J., Vol.52, No.8, pp. 171-186, 2017 (in Chinese).
  7. [7] K. Wu, L. Zhang, and X. Chen, “The Barrier of Hukou reform: An analysis of the qualifications for the urban Hukou,” Chinese J. of Population Science, Vol.24, No.1, pp. 66-74+112, 2010 (in Chinese).
  8. [8] G.-W. Cai and H. Yang, “Can FDI reduce China’s factor market distortions,” China Industrial Economics, Vol.2019, No.10, pp. 42-60, 2019 (in Chinese).
  9. [9] H.-M. Fan and H.-Z. Mu, “Effects of environmental regulations on the employment of urban dual labor—based on the perspective of labor market segmentation,” Economic Theory and Business Management, Vol.2017, No.2, pp. 34-47, 2017 (in Chinese).
  10. [10] M. An and C. Zhang, “Does environmental regulation exacerbate wage distortion,” J. of Southwest Minzu University (Humanities and Social Science), Vol.41, No.7, pp. 118-128, 2020 (in Chinese).
  11. [11] J. Fan, “Industrial agglomeration and difference of regional labor productivity: Chinese evidence with international comparison,” Economic Research J., Vol.41, No.11, pp. 72-81, 2006 (in Chinese).
  12. [12] S.-H. Ji, Y.-M. Zhu, and X. Zhang, “Study of industrial agglomeration improving misallocation of resources,” China Industrial Economics, Vol.2016, No.6, pp. 73-90, 2016 (in Chinese).
  13. [13] G.-Q. Zheng, “A study on the formation mechanism and effects of labor market distortion in China,” Ph.D. Thesis, Jilin University, 2021 (in Chinese).
  14. [14] X. Yu and X. Chen, “Empirical research on the effect of the household registration system evolvement on labor market segmentation in China: From dual perspectives of employment opportunities and wage gap,” Economic Research J., Vol.47, No.12, pp. 97-110, 2012 (in Chinese).
  15. [15] Y.-R. Xia and M. Lu, “The ‘three relocation of Meng’s mother’ among cities: An empirical study of public services affecting labor flow,” Management World, Vol.2015, No.10, pp. 78-90, 2015 (in Chinese).
  16. [16] H. Song,J. Luo, and L. Jiang, “The effect of the change in the urban household registration criteria on talent flow and business innovation,” Finance & Trade Economics, Vol.43, No.5, pp. 82-95, 2022 (in Chinese).
  17. [17] H. Yan and Z. Xu, “Rural labor flow and regional economic disparities,” Issues in Agricultural Economy, Vol.2008, No.6, pp. 52-58+111, 2008 (in Chinese).
  18. [18] M. Ghosh and J. Whalley, “Endogenous effort and intersectoral labour transfers under industrialization,” J. of Economic Integration, Vol.22, No.3, pp. 461-481, 2007.
  19. [19] Y. Zhong, M. Lu, and X. Xi, “Agglomeration and service industry development: Based on the perspective of population spatial distribution,” Management World, Vol.36, No.11, pp. 35-49, 2020 (in Chinese).
  20. [20] C.-T. Hsieh and E. Moretti, “Housing constraints and spatial misallocation,” American Economic J.: Macroeconomics, Vol.11, No.2, pp. 1-39, 2019.
  21. [21] Z. Yuan, “Deepening factor market reform and innovating the mode of opening up to the outside world,” Economic Research J., Vol.48, No.2, pp. 19-20+54, 2013 (in Chinese).
  22. [22] Y. Chen and W. Hu, “Distortions, Misallocation and Losses: Theory and application,” China Economic Quarterly, Vol.10, No.4, pp. 1401-1422, 2011 (in Chinese).
  23. [23] J. Zhang, G. Wu, and J. Zhang, “The estimation of China’s provincial capital stock: 1952–2000,” Economic Research J., Vol.39, No.10, pp. 35-44, 2004 (in Chinese).
  24. [24] K. Wu and L. Zhang, “Developmentalist government and urban Hukou threshold: Rethinking Hukou system reform,” Sociological Studies, Vol.25, No.6, pp. 58-85+243, 2010 (in Chinese).
  25. [25] J. Zhang and C. Lu, “A quantitative analysis on the reform of household registration in Chinese cities,” China Economic Quarterly, Vol.18, No.4, pp. 1509-1530, 2019 (in Chinese).
  26. [26] M. Wang, “Employment opportunities and wage gaps in the urban labor market: A study of the employment and wages of migrant laborers,” Social Sciences in China, Vol.2005, No.5, pp. 36-46+205, 2005 (in Chinese).
  27. [27] W. Sun, C. Bai, and P. Xie, “The effect on rural labor mobility from registration system reform in China,” Economic Research J., Vol.46, No.1, pp. 28-41, 2011 (in Chinese).
  28. [28] J. Ding and K. Deng, “Fiscal decentralization, non-economic public goods supply and household registration,” Chinese J. of Population Science, Vol.2011, No.4, pp. 44-52+111, 2011 (in Chinese).
  29. [29] F. Cai, Y. Du, and M. Wang, “Household registration system and labor market protection,” Economic Research J., Vol.36, No.12, pp. 41-49+91, 2001 (in Chinese).
  30. [30] Y.-N. Zou and A. Li, “Household registration control, city size and urban development,” Contemporary Economic Research, Vol.2013, No.9, pp. 53-60, 2013 (in Chinese).
  31. [31] W. Lu and B. Zhang, “Household threshold, development-oriented government and the urbanization of population policy: Evidence form large and medium-sized cities in China,” South China J. of Economics, Vol.2016, No.2, pp. 28-42, 2016 (in Chinese).
  32. [32] M. Song and P. Jin, “Regional protection, resource misallocation and environmental welfare performance,” Economic Research J., Vol.51, No.12, pp. 47-61, 2016 (in Chinese).
  33. [33] J. Han and Q.-L. Zheng, “How does government intervention lead to regional resource misallocation—based on decomposition of misallocation within and between industries,” China Industrial Economics, Vol.2014, No.11, pp. 69-81, 2014 (in Chinese).
  34. [34] Q. Liang, J. Li, and J. Chen, “The progress of research on location selection of heterogeneous labor force,” Dynamics of Economics, Vol.2018, No.4, pp. 122-137, 2018 (in Chinese).
  35. [35] S. Zhang, B. Xu, and W. Gu, “Statistical and economic tests for the time-varying elasticity production function model,” Statistical Research, Vol.28, No.6, pp. 91-96, 2011 (in Chinese).

*This site is desgined based on HTML5 and CSS3 for modern browsers, e.g. Chrome, Firefox, Safari, Edge, Opera.

Last updated on Nov. 24, 2023