Working Paper: NBER ID: w21314
Authors: Cynthia Kinnan; Shingyi Wang; Yongxiang Wang
Abstract: This paper exploits two unique features of China's history to study the effects of access to internal migration: reforms to the household registration (hukou) system, and historical migration flows. We show that temporary migration due to a government policy called the “sent-down youth” (SDY) program created lasting inter-province links, so that decades later, hukou reforms in cities which sent SDY increased migration in provinces where those SDY temporarily resided. Using this variation, we find that improved access to migration leads to higher consumption levels and lower consumption volatility for rural households. Furthermore, household production shifts into high-risk, high-return activities.
Keywords: migration; hukou system; rural households; China
JEL Codes: O15
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| increased access to migration (F22) | higher consumption levels (E21) |
| increased access to migration (F22) | reduced consumption volatility (E21) |
| increased access to migration (F22) | increase in food consumption (D18) |
| increased access to migration (F22) | shift in household production strategies (D13) |
| shift in household production strategies (D13) | increase in income from animal husbandry (Q10) |
| shift in household production strategies (D13) | increase in income from fruits (E25) |
| increased access to migration (F22) | decline in nonproductive and agricultural assets (Q15) |