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<p>Urbanization plays a key role in economic development, with population agglomerating in urban areas during this process. However, such urban population increase does not necessarily reflect a structural transformation from agricultural to non-agricultural sectors, primarily due to the inappropriate definition of what is counted as “urban.” In this paper, we highlight how this flawed definition leads to misunderstandings of the urbanization process in China. Our findings show that over one-third of the urban population growth between 2010 and 2015 can be attributed to the reclassification of settlements from rural to urban. However, households in these reclassified communities possess characteristics similar to those from rural villages. They predominantly exhibit high homeownership rates and limited demand in the urban housing market. Additionally, this urbanized population does not benefit from the urbanization process concerning their labor market performance and welfare outcomes.</p>

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Relocating or reclassified? A new perspective on China’s urban population growth

  • 期刊论文

  • 发表日期：

    2025年1月30日

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  • Li Gan,
  • Qing He,
  • Ruichao Si,
  • Daichun Yi

摘要

Urbanization plays a key role in economic development, with population agglomerating in urban areas during this process. However, such urban population increase does not necessarily reflect a structural transformation from agricultural to non-agricultural sectors, primarily due to the inappropriate definition of what is counted as “urban.” In this paper, we highlight how this flawed definition leads to misunderstandings of the urbanization process in China. Our findings show that over one-third of the urban population growth between 2010 and 2015 can be attributed to the reclassification of settlements from rural to urban. However, households in these reclassified communities possess characteristics similar to those from rural villages. They predominantly exhibit high homeownership rates and limited demand in the urban housing market. Additionally, this urbanized population does not benefit from the urbanization process concerning their labor market performance and welfare outcomes.