Does Hukou pay? Evidence from nanny markets in urban China

Xiaobo He and Zijun Luo

China Economic Review, 2020, vol. 63, issue C

Abstract: This paper quantifies the effect of the Chinese Hukou (household registration) on expected wage of nannies in urban China. Using a novel data set with detailed individual information of nannies from 12 Chinese cities during 2015–2016, this study finds that a 1% increase in Hukou Index, a measure of inter-regional migration restrictions, leads to a 0.05% increase in expected wage of nannies. The effect is heterogeneous for sub-categories of Hukou policies and among different types of nannies. Migration networks also play a significant role, and the effects are different for migration networks of different sizes. These findings reveal the unexpected consequences of China’s tight control of internal migration and the change in wages of a relatively low-skill service sector.

Keywords: Hukou; Nanny Markets; China (search for similar items in EconPapers)
JEL-codes: J08 J15 J31 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:63:y:2020:i:c:s1043951x20301061

DOI: 10.1016/j.chieco.2020.101509

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