Some people suppose industrial upgrading means waning demand for "low-end" workforce, and therefore urban areas should restrict the inflow of "low-end" workers by implementing a stricter household registration policy. This is a big misunderstanding.

It is not true that big cities with high labor productivity and high-income levels require few low-skilled workers. In fact, the concentration of high-skilled talents in one place increases the demand for low-skilled workers. The proportion of blue-collar workers should generally be higher in bigger cities compared with smaller ones.

High-skilled talents and low-skilled workers are complementary to each other. In a society with high division of labor, low-skilled workers can benefit from highly skilled talents and improve their lot. For instance, workers in the service industry who get more chances to serve foreigners can learn a foreign language faster than other workers. And the more people earn, the more they spend to get services, which in turn requires more low-skilled workers to serve them.