Urban Segregation and Migrant Overwork: Evidence From Hukou Conversion in China

ABSTRACT This paper develops a simple theoretical model to examine the impact of urban segregation, driven by the hukou system, on labor supply, with a specific focus on overwork among rural‐to‐urban migrants in China. Using data from the 2017 Urban–Rural Comparative Survey, we apply a quasi‐natural experiment, along with propensity score matching (PSM) and an instrumental variable (IV) approach, to address potential endogeneity. Our findings show that migrants without urban hukou are significantly more likely to engage in overwork than those who have successfully converted their hukou. Specifically, urban residents with hukou conversion are 22.29% less likely to overwork than rural migrants and, on average, they work 13.04% fewer hours. Furthermore, the adverse effects of the hukou system are more pronounced among migrants with greater family responsibilities, lower income levels, longer migration distances, and those living in larger cities. These results highlight the role of economic insecurity and limited access to social welfare benefits in driving overwork among rural migrants, emphasizing the need for policy reforms that address the institutional barriers perpetuating labor market inequalities.