Beijing hukou costs 500,000 Yuan
It is known that price of Beijing hukou soars to 500,000 Yuan in black market. In Baidu forum (one of the biggest China forums) several fixed ID repeatedly post similar information. the title these days is “book 2012 Beijing hukou”. Their offer varies from 300,000 to 500,000 Yuan. And the price even includes a job. Most of the potential buyers include this year’s graduates, returned overseas students and some out-of-town students` parents.
The additional benefits behind hukou are the reason why people pay a high price. The benefits behind hukou far outweigh the cost of purchase. A survey by China Youth Daily shows that most participants believe hukou carries too many social functions, the bigger the city is, the more bundled benefits and special resources people can obtain. 73.1% people choose hukou for housing accumulation fund, medical insurance, pension insurance, and linked social security benefits. 62.7% of people hope to resolve problem of children’s educational inequality.
Children’s education is the first reason why people are crazy about hukou. According to statistics, without aBeijinghukou, extra fees of about 5,000-20,000 Yuan a year are needed to send their children to public schools. Besides, compared to other provinces, the national college administration requirements for Beijing students are also much lower. That means the enrolment rate for Beijing students are much higher than those from other places.
The 52-year old hukou system is a legacy of the dualistic economy, serving as a highly effective measure of limiting migration and keeping farmers tied to the land. Such inferiority manifests itself in forms of discrimination in job markets and deprivation of social benefits and public services. And migrant children often miss out on education opportunities because hukou is inherited.
To achieve long-run economic growth and social stability, China needs to address this long-standing hukou problem. The Hukou system is intertwined with social policy reforms on all fronts: pension, health care, social insurance, education and housing. To change this situation, the government must peel off hukou-related benefits and fundamentally change the current discriminatory arrangements of current household registration system.