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1 [1] (January 7, 2016)

handle is hein.crs/govcdvp0001 and id is 1 raw text is: 01;0i E.$~ & Updated January 7, 2016 China's Hukou System: Overview, Reform, and Economic Implications First introduced in 1951, the Chinese hukou (household registration) system is a categorization of its citizens based on both their place of residence (living in urban/rural areas) and eligibility for certain socioeconomic benefits (agriculture/non-agriculture). Hukou is issued through a process administered by local authorities and solidified into inheritable social identities that especially limits the mobility of Chinese laborers. The Chinese government imposed the system to regulate population distribution, especially in large cities. Since economic reforms started in 1979, hundreds of millions of people have migrated from their home towns to work in urban areas, such as Shanghai. The number of rural laborers working in China's cities was 274 million in 2014, 36% of the total workforce. Although such workers are allowed to reside in the cities where they work, their job situations are often more difficult than those of holders of urban hukous (see Table 1), and they are generally denied access to social entitlements, such as pensions, medical insurance, and basic education for their children. t \ oe, tht Hko SYsmten, W'orkk Traditionally, an individual's hukou status (agricultural, non-agricultural, blue-stamp, and other types) is an inherited social identity, but in recent years it has become more complicated with the introduction of new categories of urban hukou. The differences of hukou status can be seen in terms of accessibility to urban benefits and opportunities (such as access to education, housing, and health care), and qualifications required for a hukou category. Each province or large city has its own system to obtain a local hukou registration. Rural residents who wish to permanently move to an urban area must submit separate applications to change their permanent residence and their agricultural status. They must also obtain authorization from their current place of residence and apply for temporary registration at their destination. For example, Shenzhen's three hukou categories (Temporary, Blue-Stamp, and Regular) are based on a set list of qualifications that receive certain entitlements and benefits based on the specific categories determined by factors such as age, level of education, business ownership, investments over a certain amount, and possession of a valid Temporary Resident Certificate. Figure I. China's Urban Population Growth and Urbanization: (1950-2013) (in millions) ' ............................ .... .... ........ .... ........ 1~.X' ii':'. Source: National Bureau of Statistics of China. Table 1. Comparison of Formal and Informal Employment . f.Iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii '............ ............. ............. . . . . . ...............................................i ......................................... :::::::::::::: :: ::: ::::::::::::::::::::::::: : : ::: : ::: :::::: ::::: :::::::::::: I I Sore ainlBrad ofstatisic ofnChina. orm elfp-ow ntd hmlss nt(N Souce Isttue f (H ulaot and Labou hukoonormics.o M aanecnomsts workdha Cinaw's deorp in) ouscehol Natclryison-rculued ol Agrcuurlem nd non registratio typnig ae lsinfiat cmalto h Urban.................. residency.Full.legal .status.Illegal.or.temporar status......... Socioeconomic.............. Mostly..................... state..sectors..and..Small.and..self- sectors........................................ st.t.-owned.enterprises..mp......enterprise Occupations.............. Managerial................... staff,...Physical ...labor, ...self- . ............................technicians .............. . and....skilled.....em ployed.... .. . . .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . . .. . . ...wo rk e rs. . .. . . .. . . .. . . .. . . .. . . . Employment...... Determine by... planin Bae on.pesona Channel.... orfrmlcanes cotct.n.mre .............infor..m at. n Work . status Relativel less deanin Highly demadin and. and......... stable unstable securit and U f y benefits... Housing....... Allocated... by.. wok. nts Lw-os.hetrso ...............or. self-owned..... homeless .. . pocepatiulrl Nits one-ch1tidan polcl (implmented in- 1979),aebni ng top haealiniian cmactol h .O 'T gogn, q \popmm- , g-o g , q a s ' X