Hukou reform 'crucial to economic future'

Lack of residence rights leads to short-term decisions in education, vocational training

Reform of the household registration system (hukou) could have the most direct impact on the economy as the nation's traditional advantages such as cheap and abundant labor wane, a top economist told China Daily.

Cai Fang, vice-president of the Chinese Academy of Social Sciences and a top expert on labor economics, identified hukou reform and education reform as the two critical steps needed to enhance long-term growth prospects in the nation.