Abstract: Previous research on hukou-based stratification in China’s urban
labor market has either exclusively focused on inequalities between urban
residents and rural migrants or neglected the segmented structure of urban
economy. In this paper we analyze whether and how individuals’ hukou status
affects their labor market outcomes in urban China’s segmented economy, by
simultaneously examining the effects of two hukou characteristics––the type
of registration and the place of registration. Based on a sample of the 2005
population mini-census in Shanghai, we have found that, in addition to
urban-rural hukou divide, the distinction between local hukou and nonlocal
hukou also plays an important role in determining workers’ entry into different
sectors, occupational attainment, and earnings. We also showed that industrial
segmentation matters more than ownership segmentation in the process of
hukou-based stratification.

Chinese Sociological Review 2015 47(2)