Impact of household registration system reform on the sustainable income of rural migrant households: evidence from China

Purpose Ensuring rural migrants' access to sustainable income forms the foundation of urban integration. This study examines how China's household registration system reform (HRSR) affects the sustainable income of migrant households by addressing institutional barriers within the urban–rural dual structure. Design/methodology/approach This study develops a theoretical framework that incorporates the HRSR and sustainable income. Based on this framework, it employs a difference-in-differences (DID) model to empirically investigate the impact of the HRSR on household sustainable income. It also explores heterogeneous effects based on human capital, factor reallocation effects, regional context and conducts mechanism analysis. Findings The results show that the HRSR significantly enhances sustainable income of rural migrant households. While the reform raises wage, property, and transfer income, it reduces operating income. Heterogeneity analysis indicates stronger effects for rural migrant households with higher human capital, those participating in land transfer, and those migrating to more developed and better-connected regions. Mechanism analysis shows that the HRSR improves sustainable income by enhancing nonfarm employment stability, financial asset allocation effectiveness, and access to public services. Originality/value This study offers new insights into how institutional reforms like the HRSR affect sustainable income at the household level. The findings have important implications for promoting the integration of rural migrant households into urban areas.