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Hukou System Reform and Unification of Rural–urban Social Welfare
Author(s) -
Cai Fang
Publication year - 2011
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2011.01241.x
Subject(s) - unification , incentive , economics , china , limiting , government (linguistics) , welfare reform , point (geometry) , economic system , economic shortage , politics , market economy , welfare , economic policy , political science , mechanical engineering , linguistics , philosophy , geometry , mathematics , computer science , law , programming language , engineering
Using a political economy analytical framework, the present paper examines the hukou system reform in China. The potential unification of the social welfare system of rural and urban areas is discussed. The paper reviews the progress of hukou system reform since 2004. It is suggested that since China met its Lewis turning point in about 2004, and a labor shortage became a limiting factor in production, there has been stronger demand for hukou system reform. In the meantime, various levels of government have a point where incentives are compatibile for carrying out reforms. The paper also explores some limitations of the currently implemented reform in certain regions and puts forward relevant policy suggestions.