Urban segregation and consumption inequality: Does hukou conversion matter in China?

This paper develops a simple theoretical model and offers empirical evidence of urban segregation on consumption inequality between rural-to-urban migrants residents. Our analyses are based the 2007 China Household Income Project (CHIP) 2017 Migrants Dynamics Survey (CMDS) data. Results obtained from propensity score matching 2SLS methods show that caused by hukou system leads to significant Hukou conversion matters for improving migrants’ consumption, but when or how was transferred makes little difference. Besides, we find disparity in residents is more prominent higher-income group cities with stricter restrictions conversion. Finally, our results robust series sensitivity checks.