Analysis On China's Household Registration System And The Corresponding Reforming Policies

China's existing household registration system was formed at the early founding of PRC, at that specific time, restrictive household registration system played some positive role. However, the social and economic cost of this system in the context of today's market economy is obvious, and this policy is essentially an obstacle for free movement of labor resource, thereby it reduces the efficiency of the allocation of the whole society's labor resource. On the other hand, if fully open residence restriction, it will overwhelm public resources of the city and result in rapid expansion of urban population size and the exceeding of the optimal size of the city, so that the cost of city management and urban congestion costs accelerate, which will result in the other social and economic costs.Therefore, taking the above two factors into account, even for the entire social welfare's maximization, fully and immediately cancel the household registration system is not necessarily the best solution, and may be limit it down to a particular level is a more appropriate way.And this paper will try to analysis on the following problems:From the central government's point of view, which city will have to carry out the reforming of household registration system, and from the perspective of the local government we set up the theoretical model to determine what factors affect household registration system and which is the optimal level of household registration restriction. On the other hand, we also need to carry on empirical analysis to determine which city's household registration restriction is more restrict and how to improve the adverse effects of the household registration system.Our goal is:From the above understanding of local government's household registration system, using a combination of theoretical and empirical method to determine what factors affect household registration system, and on this basis to obtain a better interpretation of local government's household registration system.