Urban bias, migration control and rural land policy: the case of Hukou in China

Author:

Shifa Abdulaziz B1ORCID,Xiao Wei2

Affiliation:

1. Department of Economics, The Maxwell School of Citizenship and Public Affairs, Syracuse University , 110 Eggers Hall, Syracuse, NY 13244, USA

2. Research Institute of Economics and Management, Southwestern University of Finance and Economics , Chengdu, Sichuan 611130, China

Abstract

Abstract Urban-biased politics often drives distortionary policies in many countries. We develop a political economy model in which the government faces a trade-off between retaining urban support and expanding its industrial rent base. The model shows that while an increase in urbanization strengthens the government’s incentives to adopt rural land reform and to encourage rural–urban migration, an increase in urban productivity has the opposite effect. These effects are mediated by the income share of labor in the rural sector, the political power of urban residents and the labor elasticity of urban output. Using China’s context, we illustrate that the model’s predictions are consistent with the observed policies on land ownership and rural–urban migration.

Funder

National Natural Science Foundation of China

111 Project of China

Publisher

Oxford University Press (OUP)

Subject

Economics and Econometrics,Geography, Planning and Development

Reference56 articles.

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4. Evolution of land distribution in West Bengal 1967–2004: role of land reform and demographic changes;Bardhan;Journal of Development Economics,2014

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