Household Register、Discrimination And Income Gap Between Urban And Rural Residents

Along with the free movement of the laborers between urban and rural areas sinceChina’s reform and opening up, the economic has rapidly developed. It also brings aseries of problems. Such as the expansion of income gap between urban and ruralresidents and the income disparities between the urban workers and migrant workersin the labor market and so on. If this income difference dues to individualcharacteristics of workers, then the existence of this difference is consistent with therules of the market economy. However, various phenomena tell us that because of thepresence of the household register, the urban and rural residents face a series ofunequal treatment in the urban labor market. The migrant workers are discriminatedwhile most of them entering the market with low wages and long working hours,they still treat with unequal pay although for the same work, their income levels aresignificantly lower than those of the urban workers.This paper bases on this point and firstly we try to study the income andemployment situation of the urban and rural workers under the household register.Secondly, we analyze the wage and welfare differences between the urban and ruralworkers after entering into the industry. we combine the Probit model with the OLSmodel to analyze this phenomenon, and then we summarize the conclusion of thispaper：on one hand, comparing with the rural laborers, the urban laborers have moreopportunities to enter into the high-income industry; On the other hand, after enteringinto the industry, the income of the urban laborers is higher than the rural laborers. So,the discrimination to the rural workers under the household register leads to theemployment and income difference between the urban and rural workers.The above conclusions may provide useful advices for China’s reform of householdregister and promote urban and rural integration, and can provide a theoretical basisfor narrowing the income gap between urban and rural areas. So, we should try hardto reform and improve the household register, and make great effort to eliminate theemployment and income discrimination of the migrant workers. Besides, we shouldaccelerate the construction of the social security system of migrant workers,consummate the employment policy, and promote the sharing of educational resourcebetween the rural and urban areas.