Based on the 2000 census data and other relevant data, this paper investigates the spatial pattern and determinants of large-scale migration in China. The hukou system segregates rural and urban labour market and makes rural-to-urban migration a unique process in China’s economic transition. The empirical results show that the differences in expected income and in extent of marketization between regions are important factors directing the flow of migration. The employment opportunities and availability in urban areas also plays a role in migration decision. The policy implication is that the abolition of the various institutional obstacles that hinder the development of a labour market will not only gain a significant efficiency in resource reallocation, but also normalize migration flows in a rational way.
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