Chinese economic development and urbanization have entered a new stage. Return of migrant workers presents new characteristics which returning to hometowns permanently rather than temporarily. Workers return from urban sector with higher productivity to rural sector with lower productivity，“Inverse Kuznetsization （IK）” phenomenon poses challenges to urban and rural integrated development. We incorporates urban household registration system （UHRS） and rural land system （RLS）into a unified analysis framework to explain Chinese unique “Inverse Kuznetsization” phenomenon. We found that institutional factors play an important role in process of “IK”. Both UHRS and RLS have a significant impact on decision-making of migrant workers returning. City with higher value of household registration and more difficult to settle tends to “squeeze out” migrant workers with creating a push. While outflow rural areas with high land value tend to “stick” to migrant workers with making a pull.