Does Household Registration Matter? Valuing Urban Hukou in China

Yu Chen (), Shaobin Shi () and Yugang Tang
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Yu Chen: University of Graz, Austria
Shaobin Shi: Shandong University, China

No 2018-14, Graz Economics Papers from University of Graz, Department of Economics

Abstract: This paper explores the demand side of hukou (household registration) acquisition in China by estimating the market valuation of urban hukou. According to the provisions in Jinan City s Acquiring Hukou by Purchasing Houses policy, this paper uses houses slightly larger than the minimum required floor area as the treatment group, and houses slightly smaller than the minimum required floor area as the control group to perform regression discontinuity design. Empirical results show that residents willingness to pay for urban hukou in Jinan City was between approximately 90,000 and 126,000 yuan (RMB) in 2017. Our finding is robust to both parametric and nonparametric estimates and different model specifications. We also perform falsification tests by assuming a false policy introduction date and placebo tests based on rental data. Our analysis also offers insights for reform of the hukou system and designs for the provision of public services or welfare.

Keywords: Hukou system; Willingness to pay for hukou; Acquiring hukou by purchasing houses; Regression discontinuity design (search for similar items in EconPapers)
JEL-codes: H75 J61 P25 R38 (search for similar items in EconPapers)
Date: 2018-06
New Economics Papers: this item is included in nep-cna, nep-tra and nep-ure
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