How Land Transfer Affects the Urbanization of Migrant Workers: Evidence from China

The transfer of surplus rural labor is crucial for urbanization and rural revitalization in developing countries. This study specifically examines China, which focuses on how household registration reform and land transfer influence the willingness to urbanize. Logit analysis indicates that land transfer significantly deters institutional urbanization, positively influences residential urbanization, and has a marginal yet positive impact on psychological assimilation urbanization. In addition, this study identifies that the land factor is negligible in affecting psychological assimilation urbanization; instead, the inclusiveness and acceptance that is offered by the city significantly enhance migrant workers’ psychological sense of belonging. Heterogeneity analysis highlights varied urbanization settlement preferences among different demographics, particularly noting the distinct tendencies of newer generations, highly educated individuals, those with limited local interactions, cross-regional migrants, and those moving to highly urbanized areas. Based on these observations, this study proposes targeted policy recommendations. These include enhancing basic education in rural regions, upgrading vocational training for migrant workers, broadening the scope of labor mobility, and improving the urban environment in tangible and intangible aspects. Overall, this study enriches the understanding of the dynamics of surplus rural labor transfer and its urbanization implications, which could provide a scientific foundation for crafting more precise and effective policies.