Abstract:Since the reform and opening up, a large number of migrant workers have poured into cities to work and live. In the one hand, their consumption is influenced by past rural living habits, in the other hand, they are influenced by urban residents. Based on the microscopic survey data of CHIPS, CLDS and CGSS from 2002 to 2015, this paper constructs a pseudo panel by using the cohort method, and makes a systematic GMM estimation on the internal and external habit formation of migrant workers' household consumption. The results show that there is excessive sensitivity to immediate income in the family consumption of migrant workers; because their consuming habit stays at the transition from rural residents mode to urban residents mode, there is no internal habit formation effect in the family consumption of two generations of migrant workers, but there is an obvious external habit formation effect; comparing with old generation migrant workers, the family consumption of the new generation of migrant workers is more affected by the urban consumption mode and expresses stronger external habit formation effect. China should raise the income of migrant workers by perfecting social security system, provide housing guaranteeing and vocational training, guide the consumption of new generation migrant workers and accelerate the development of consumption credit market and so on to boost the urbanization transition of consumption habit of migrant workers.