Housing prices, rurale-urban migrants' settlement decisions and their regional differences in China

Zang, Bo, Lv, Ping and Warren, Clive M.J (2015) Housing prices, rurale-urban migrants' settlement decisions and their regional differences in China. Habitat International, 50 149-159. doi:10.1016/j.habitatint.2015.08.003

Author Zang, Bo
Lv, Ping
Warren, Clive M.J
Title Housing prices, rurale-urban migrants' settlement decisions and their regional differences in China
Journal name Habitat International   Check publisher's open access policy
ISSN 0197-3975
Publication date 2015-12
Year available 2015
Sub-type Article (original research)
DOI 10.1016/j.habitatint.2015.08.003
Open Access Status Not Open Access
Volume 50
Start page 149
End page 159
Total pages 11
Place of publication Kidlington, Oxford, United Kingdom
Publisher Pergamon Press
Collection year 2016
Language eng
Abstract Rural–urban migrants are the major group who will boost the transformation of China's urbanization and reform of the household registration system. Their aspirations of living in the immigration area are an important premise of institutional change. The housing prices within the immigration areas are an important factor that can influence the rural–urban migrants' settlement decision. To what degree does the housing price influence the settlement decision? Do regional differences exist in the influence of house price? These issues need to be analyzed and verified in a theoretical and empirical ways. By introducing the variables of the housing price into the life-cycle theory function, we found that housing price influences the settlement decision through the welfare dissipation effect and the expected wealth effect. On the basis of welfare dissipation effect, hypothesis 1, we can come to the conclusion that high housing price will play a negative role in the process of settlement decision formation. Through expected wealth effect, hypothesis 2, we estimate that a housing price rise will promote the aspiration of living in the immigration area to some extent inversely. On this hypothesis basis, using the panel data model of China's 31 provinces and cities for the period 1995–2012, we found that, at the national level, the influence of housing price to the settlement decision is not significant. From the view of regional differences, the influence is negative in the eastern area, indicating that the welfare dissipation effect is greater than the expected wealth effect, in line with the hypothesis 1. The increase of housing prices will promote the settlement decision in the central area, this phenomena explains that the expected wealth effect is greater than the welfare dissipation effect, in line with the hypothesis 2. In the western area, the influence is non-significant.
Keyword China
Housing prices
Rural - Urban migrants
Settlement decisions
Regional differences
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2016 Collection
UQ Business School Publications
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Created: Wed, 26 Aug 2015, 13:07:02 EST by Dr Clive Warren on behalf of UQ Business School