The Discrimination in Job Obtainment by Hukou in Labor market in China and Its Change Trend

Zhang Li; Li Shi; William A. Darity Jr.; Rhonda Vonshay Sharpe

doi:doi:10.16538/j.cnki.jfe.2016.01.001

Abstract

This paper firstly clarifies the differences and connection between the theory of labor market segmentation and the economics of discrimination,and defines the hukou inequality of job distribution in Chinese labor market as economic discrimination whose essence is some harm to equal rights to employment enjoyed by migrant workers.Then it utilizes the data of CHIP 2002 and CHIP 2007 to investigate the situation and change trend of the discrimination in job obtainment by hukou through a multinomial logit model.It comes to empirical results as follows:firstly,different from their urban counterparts,there is significant hukou discrimination against rural migrants in three dimensions in terms of occupational attainment,access to the industrial sectors,and access to enterprises of different ownership;secondly,compared with 2002,the discrimination in job obtainment against rural migrants is deteriorating in 2007,reflecting the "negative trickle-down effect" in job distribution in the process of economic development;thirdly,lower returns to human capital in job opportunities for rural migrants may thwart their enthusiasm for investing in their human capital and induce pre-market discrimination.Based on the theoretic and empirical analysis,this paper provides relevant policy suggestions about the relief from the discrimination in job obtainment by hukou.