Social Identity and Inequality: The Impact of China's Hukou System

By Farzana Afridi, Sherry Xin Li, Yufei Ren. Social Science Research Network, 2015

469 citations recorded by the source corpus.

We conduct an experimental study to investigate the causal impact of social identity on individuals' response to economic incentives. We focus on China's household registration (hukou) system which favors urban residents and discriminates against rural residents in resource allocation. Our results indicate that making individuals' hukou status salient and public significantly reduces the performance of rural migrant students on an incentivized cognitive task by 10 percent, which leads to a significant leftward shift of their earnings distribution. The results demonstrate the impact of institutionally imposed social identity on individuals' intrinsic response to incentives, and consequently on widening income inequality.

Subfields: Demography, Economics and Econometrics, Safety Research

View Paper: https://www.semanticscholar.org/paper/48e7298e030bcf07b759995cfcf0f4e61c743e81

How researchers see this paper

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In Demography

  1. H. Selod

In Economics and Econometrics

  1. Forhad Shilpi
  2. Ling-Di Li
  3. Yan Liu
  4. H. Selod

In Safety Research

  1. Forhad Shilpi
  2. Ling-Di Li
  3. Yan Liu
  4. H. Selod

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