Unequal Access to Formal Employment and Urban Social Sustainability: The Role of Residential Differentiation Among Rural Migrants in Urban China

Unequal access to employment poses a critical challenge to urban social sustainability, particularly in migrant-receiving cities. Residential differentiation, as a spatial manifestation of inequality, may structurally constrain migrants’ opportunities to enter formal labor markets and achieve social inclusion. Using survey data from rural migrants in Beijing’s urban fringe areas in 2024 (N = 539), this study examines the impact of residential differentiation on labor market outcomes, with a focus on formal employment entry. Probit models and instrumental variable estimation are employed to address endogeneity and explore underlying mechanisms. The results show that higher levels of residential differentiation significantly reduce migrants’ likelihood of entering formal employment. After accounting for endogeneity, residential differentiation is also associated with a higher risk of overtime work. Mechanism analysis further indicates that commuting distances serve as a core pathway through which residential differentiation affects employment outcomes, not merely as a matter of physical distance but by shaping the range of accessible job opportunities. In contrast, heterogeneous social networks function as an important moderating mechanism that can help individuals access employment information and opportunities beyond their immediate residential environment. These findings suggest that unequal access to employment is a key pathway through which residential differentiation undermines urban social sustainability, highlighting the importance of policies that promote inclusive labor markets and cross-group social integration.