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Unlike systems of household registration in earlier eras, the hukou system is not used as a basis for taxation. Its principal use is instead to maintain order by creating a de facto restriction on freedom of movement – individuals can only receive social benefits in the area where they are registered.

David Stasavage Quote: “Unlike systems of household registration in earlier eras, the hukou system is not used as a basis for taxation. Its principal use is instead to maintain order by creating a de facto restriction on freedom of movement – individuals can only receive social benefits in the area where they are registered.”
David Stasavage Quote: “Unlike systems of household registration in earlier eras, the hukou system is not used as a basis for taxation. Its principal use is instead to maintain order by creating a de facto restriction on freedom of movement – individuals can only receive social benefits in the area where they are registered.”
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