Hukou after 1980
After the year of 1980, a lot of things change. In practice, Hukou is not enforced as strong as before. The starting point is that Liangpiao is not required to buy food - money along work. For work, there are still huge difference for people with a Hukou or without a Hukou (the same till today), but it is possible to move.
This made it possible for many immigrant workers to leave their land and go to cities to seek for labor-intensive work. Typical works are workers in texile factory, consitruction workers, and nannies. However, the education of their children is still a big problem. They cannot receive education as other children, so some places, they setup school only for people without Hukou (immigrant worker school). Personally, I feel it even bad than the old "black and white seperation" policy.
Today
Today, Hukou does not play that important role as before, but there are still a lot of difference. Here are some examples:
1) Medical Insurance. For example, people living in Shanghai without Shanghai Hukou are not covered by social medical insurance. If the person get ill, he/she needs to pay for it by him/herself. This is not a big deal though, since more and more commercial insurance can help on this.
2) Job. Many job only opens to people with Shanghai Hukou. This is some type of discrimination, but some employers have to do that because there are still difference by the regulation.
3) Safety.
Guangzhou is an extreme case. Four years ago, when I visited Guangzhou, my friends told me to bring my national ID card with me at any time. Police may stop anyone at any time on the street to check the ID card. If they find the address of the ID card is not in Guangzhou, and the person don't have a temp resident permit, they have the right to detain the person and return him/her to their place of origin. This is the common practice in many cities. This regulation was abandoned as late as 2003, when a guy named Sun Zhigang was beaten to death during the detain period of time.