EconPapers    
Economics at your fingertips  
 

Hukou Status, Housing Tenure Choice and Wealth Accumulation in Urban China

Yu Liao () and Junfu Zhang ()
Additional contact information
Yu Liao: Clark University

No 13836, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In Chinese cities, migrants with rural hukou, compared to residents with local urban hukou, face more uncertainty, have limited access to mortgage finance, and are less eligible for low-cost housing. A simple model demonstrates that for these reasons, rural- to-urban migrants are less likely to own housing units in cities and as a result accumulate less wealth. Our empirical analysis examines a nationally representative household survey from 2013 and uses mother's hukou status as an instrumental variable. We find that household heads with rural hukou are about 20 percentage points less likely to own housing units in cities than comparable household heads with local urban hukou. Consequently, the average household head with a rural hukou owns 310 thousand yuan less housing wealth and 213 thousand yuan less total wealth than comparable household heads with local urban hukou. The average household head with a rural hukou has 286 thousand yuan less in housing capital gains than comparable household heads with local urban hukou. Moreover, we find that these differences are much larger in the first- and second-tier cities, cities with more stringent hukou regulations, and among younger cohorts.

Keywords: hukou; tenure choice; wealth; Chinese economy (search for similar items in EconPapers)
JEL-codes: R0 R2 H0 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2020-11
New Economics Papers: this item is included in nep-cna, nep-mig, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ftp.iza.org/dp13836.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp13836

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2021-04-19
Handle: RePEc:iza:izadps:dp13836