Relocating or reclassified? A new perspective on China’s urban population growth

Li Gan (), Qing He (), Ruichao Si () and Daichun Yi ()
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Li Gan: Texas A&M University
Qing He: Southwestern University of Finance and Economics
Ruichao Si: Nankai University
Daichun Yi: Southwestern University of Finance and Economics

Journal of Population Economics, 2025, vol. 38, issue 1, No 14, 28 pages

Abstract: Abstract Urbanization plays a key role in economic development, with population agglomerating in urban areas during this process. However, such urban population increase does not necessarily reflect a structural transformation from agricultural to non-agricultural sectors, primarily due to the inappropriate definition of what is counted as “urban.” In this paper, we highlight how this flawed definition leads to misunderstandings of the urbanization process in China. Our findings show that over one-third of the urban population growth between 2010 and 2015 can be attributed to the reclassification of settlements from rural to urban. However, households in these reclassified communities possess characteristics similar to those from rural villages. They predominantly exhibit high homeownership rates and limited demand in the urban housing market. Additionally, this urbanized population does not benefit from the urbanization process concerning their labor market performance and welfare outcomes.

Keywords: Urbanization; Urban definition; Urban population growth; Reclassification (search for similar items in EconPapers)
JEL-codes: O18 P23 R23 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s00148-025-01079-2

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