Homesteads, Identity, and Urbanization of Migrant Workers

The key to advancing urbanization is to promote the urban integration of numerous migrant workers. Two stages of decision making are involved for migrant workers, including residence (staying in cities) and settlement (transferring hukou into cities). The homestead is a necessity for migrant workers to keep their “peasant” status, which will further affect migrant workers’ identification with cities and influence their decision making towards urbanization. This paper uses data from the 2017 China Migrants Dynamic Survey (CMDS), through the coarsened exact matching (CEM) method and the analysis of mediation effects, to estimate how homesteads influence migrant workers’ urbanization intention and how the sense of identity serves as a mediator variable in this mechanism. Empirical results show that the ownership of homesteads is negatively correlated with migrant workers’ urbanization intention. Migrant workers with homesteads are 1.2% less likely to stay and 4.4% less likely to settle down in cities compared with their counterparts who do not have a homestead. In addition, identity plays a mediating role in the influence mechanism of homesteads on migrant workers’ urbanization intention. That is, the homestead has an indirect effect on migrant workers’ willingness to stay and settle down in cites through the sense of identity, aside from its direct effects. The mediation effect accounts for 20.87% of the total effect for willingness to stay and 25.63% of the total effect for willingness to settle down. This paper also represents how these coefficients vary by different regions and migration distances. Therefore, policymakers should provide institutional support for correctly guiding migrant workers to “abandon their land and enter the city” and strengthen their sense of identity to the city.