Hukou type, hukou place and labour market vulnerability in Chinese megacities: The case of Beijing in the COVID-19 pandemic

Abstract

This article presents an investigation into the different roles of hukou type and place in shaping labour market vulnerability within Chinese megacities, using the COVID-19 pandemic-induced income loss in Beijing as a case study. We find that while the hukou system played a role in shaping this loss, its impact was achieved mainly through hukou place, with hukou type having no significant effect. Compared to locals, non-local hukou holders in Beijing were more likely to lose income; and their magnitude of income loss was larger. Locals and non-locals were also subject to different rules when deciding which individuals in the group would have a pay cut, with personal attributes playing a significant role in this decision for non-locals but not for locals. In addition, working in self-employed businesses was a disadvantage for the non-local group only; and the threshold by which family income helped reduce the risk of income loss was lower for non-locals than for locals. This study highlights the importance of extending the discussion on the hukou system’s impact to the question of labour market vulnerability, particularly considering the ongoing and potentially prolonged weakness in China’s labour market. It sheds light on the need to differentiate between hukou place and type in future studies concerning China’s hukou system.