The Impact of Relaxing Internal Migration Restrictions on Urban Natives' Subjective Well‐Being: Quasi‐Experimental Evidence From China's Hukou Reforms

ABSTRACT This study examines the causal impact of relaxing internal migration restrictions on the subjective well‐being (SWB) of urban natives. Taking China's 2014 household registration ( hukou ) system reform as a quasi‐natural experiment and combining data from the China Household Finance Survey (CHFS), we find that the reform has a significant negative impact on the SWB of urban natives. This effect is more pronounced for younger and lower‐income groups. Further analysis reveals that the hukou reforms deteriorate the labor market outcomes of natives, reduce their access to public services, and increase local crime rates and their risk of victimization. These results can be interpreted as potential mechanisms through which the relaxed internal migration restrictions negatively impact natives' SWB. Our findings provide valuable insights into the unintended consequences of migration policy reforms and highlight the need for balanced policy design to mitigate negative effects on host communities.