Hukou-Based Stratification in Urban China's Segmented Economy

Previous research on hukou-based stratification in China's urban labor market has either exclusively focused on inequalities between urban residents and rural migrants or neglected the segmented structure of urban economy. In this paper we analyze whether and how individuals' hukou status affects their labor market outcomes in urban China's segmented economy, by simultaneously examining the effects of two hukou characteristics--the type of registration and the place of registration. Based on a sample of the 2005 population mini-census in Shanghai, we have found that, in addition to urban-rural hukou divide, the distinction between local hukou and nonlocal hukou also plays an important role in determining workers' entry into different sectors, occupational attainment, and earnings. We also showed that industrial segmentation matters more than ownership segmentation in the process of hukou-based stratification.