Based on the 2000 census data and other relevant data, this paper
investigates the spatial pattern and determinants of large-scale migration
in China. The hukou system segregates rural and urban labour market and
makes rural-to-urban migration a unique process in China’s economic
transition. The empirical results show that the differences in expected
income and in extent of marketization between regions are important
factors directing the flow of migration. The employment opportunities
and availability in urban areas also plays a role in migration decision. The
policy implication is that the abolition of the various institutionalobstacles that hinder the development of a labour market will not only
gain a significant efficiency in resource reallocation, but also normalize
migration flows in a rational way.