| Without a unified and efficient labor market China cannot achieve the goal of successful economic transition. However, the market segregation, caused by systematic and institutional factors, has severely hindered the integration process of labour market. Among all of these factors, the hukou segregation is the unique phenomenon for China. Through the empirical method, this paper mainly analyzes the hukou segregation in China based on the review of the theories of western labor market segregation and the situation of the domestic labor market. Besides, this essay also proposes some suggestions to eliminate the hukou segregation.The article is divided into five parts.The first part raises the significance of the labor market segregation caused by hukou, based on the description of the social and economic situation of rural migrants. Also, the first part gives a summary of the paper.Chapter two and three are the theoretic parts of the article. Chapter two reviews the history of the western labor market segregation theories, including the perfect competition market hypothesis posed by Classical and Neoclassical Economics; the early labor market segregation theory; the modern labor market segregation theory and the new development of labor market segregation theory since the 1980s. Chapter three mainly investigates domestic labor market segregation in China, respectively based on non-hukou factors and hukou factor.Chapter four investigates the hukou segregation effect by empirical analysis, using the data of CHIPs 2007. The results show that hukou segregation does exist. Urban workers and rural migrants are treated differentially in employment opportunity and wage payment, and that can not be explained by the level of human capital.Chapter five concludes the article. To break the segregation and build an integrated labor market, the article puts forward some suggestions such as continuing to promote the household registration reform, raising the level of human capital of rural migrants, eliminating the hukou discrimination and enhancing the basic market function of allocating the labor resources. |
