China to Scrap Labour Permits
In an attempt to reduce the growing unemployment level, the Chinese government has decided to eliminate the labor permit system, known as hukou. The system allocates each Chinese citizen to a home district and is tied to their welfare benefits, medical treatment, and housing. The system has been breaking down in recent years as rural Chinese migrated to cities in seek of employment.
See "China to Scrap Labour Permits", BBC, BBC News Online, August 16, 2001