Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/325048 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17990
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We investigate the impact of China's 2014 hukou reform - a major change allowing migrants living in small and medium-sized cities of less than 5 million people to apply for urban residence - on formal and informal borrowing at a time of rapid economic transformation. We find that the hukou policy change has predominantly increased natives' access to finance, especially through informal sources, and for investments in housing. We also find that the policy affects households differently according to education level, with more educated households borrowing more to capitalise on rising asset prices driven by the 'additional' urban population created by the policy.
Subjects: 
formal and informal debt
hukou reform
migrants
JEL: 
D14
G51
Document Type: 
Working Paper

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