China is one of the few countires in the world that uses a household registration (hukou) regime to prohibit migration not only from rural to urban areas, but also from one province to another. Although it has not been well acknowledged and discussed by academics and policy makers in China the impact of the hukou on overall income equality is significant, as found in the present study. Despite the registration system the country has achieved remarkable double digit annual economic growth in the last two decades of economic reform, and the hukou regime and the corresponding migration restrictions remain effective. As a result, income differentials amond different regions and between rural and urban sectors have been growing.
Economic Growth, Inequality and Migration p. 68-88