The Institution ofHukou‐based Social Exclusion: A Unique Institution Reshaping the Characteristics of Contemporary UrbanChina

This conceptual article contributes to institutional analysis and the neo‐institutional theory literature by identifying and analysing the linked rules, values, norms and patterned practices that surround and structure the way rural migrant workers are treated in urban areas of C hina in terms of Scott's integrated model of institutions. It argues that these hukou ‐based rules, values, norms and patterned practices that discriminate against rural migrants can be considered to be a unique institution — the institution of hukou ‐based social exclusion ( IHSE ). IHSE has dominated C hinese urban society for 3 decades and significantly shaped the lives of millions of rural migrant workers, the character of contemporary C hina and the nature of managerial practices among C hinese firms. This is the first article to examine the social exclusion of rural workers from the perspective of neo‐institutionalism, providing the first systematic analysis of the regulative, normative and cognitive dimensions that together socially exclude migrants in urban areas of C hina. It presents a holistic picture of the newly identified institution that offers new insights into C hina's urban society and management, and a new starting point for research.