Hukou Reform and Urbanization湖口的改革和城市化.pptVIP

NYSE,January 7, 2013 Hukou Reform and Urbanization Yang Yao CCER/NSD, Peking University * * NYSE, January 7, 2013 What is the Hukou Household registration Established in 1958 to prevent free movement of people, especially from the countryside to the city. A person gets his/her Hukou in the city or village where he/she was born. Since 2003, most of the restrictions/benefits associated with the hukou were eliminated Currently, children’s education and access to welfare are the two most significant benefits associated with the Hukou. * * NYSE,January 7, 2013 Reform initiatives A reform announced on February 23, 2012 Migrants can apply for the local hukou in small cities once they have a stable job and a place (including a rented home) to live; Migrants can apply for the local hukou in small cities once they have worked and lived there for three years; No change for large cities. * NYSE,January 7, 2013 * College admissions Up to now, 18 provinces (including Beijing and Shanghai) have announced new policies toward college admissions for migrant children Some are radical requiring only one year in local high schools to qualify taking the college admission exams in the province; Some are conservative only allowing migrant children to go to technical colleges. * NYSE,January 7, 2013 * Why is the reform significant? It is about getting rid of a policy that have separated people by their birthplaces for the last half century. It is also about transforming the Chinese economy Speeding up urbanization Accelerating structural change Boosting domestic consumption * NYSE,January 7, 2013 * More than half of the population lives in the city since 2011 * * China’s urbanization lags behind of its income level when compared with other countries * * Source: WDI. Income and urbanization in low and medium income countries (2009) China * * Rural-urban migration: 1993-2011 (mil.) Source: China statistical Yearbook. Agricultural employment is still large * * Source: . A potential source