Urbanization with Chinese Characteristics

CAI Fang  and WANG Meiyan

Institute of Population and Labor Economics, Chinese Academy of Social Sciences
Abstract:

As a result of substitution of capital for labor in agriculture and rigid demand of urban sectors for migrant workers, the rural-to-urban migration becomes irreversible process, and Todaro dogma, which aims to limit the migration under the assumption of “come-and-go” migration pattern, becomes an old-fashioned theory for policy-making. By empirically confirming the advent of the Lewis turning point – namely, a new stage of labor migration and more generally of economic development, the paper reveals the policy implications of the Lewis turning point and proposes the policy reforms needed for a complete urbanization, including hukou system reform and equalization of public services.

Key Words:

urbanization, Todaro dogma, hukou reform

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