1、 https:/crsreports.congress.gov Updated January 7, 2016 Chinas Hukou System: Overview, Reform, and Economic Implications What Is Hukou? 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 ur
2、ban/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. Why Did China Impose a Huk
3、ou System? 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 work
4、ing in Chinas 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 entit
