Abstract: Homeplace-based settlement model is developed to analyse the mechanism of the homeplace-based settlement on the occupational mobility of rural-urban migrants. On the basis of theoretical analysis, empirical tests are conducted using the data of Rural-Urban Migration in China and Probit model. It is found that choosing to live with their fellow townsman is not conducive to the occupation upward mobility of rural-urban migrants. After using heteroskedasticity-based instruments to address potential endogeneity issues in the model, as well as using propensity score matching and following Heckman treatment effects model to solve the problem of sample selection bias, the conclusion remains robust. Further research finds that the social spatial isolation caused by residential spatial isolation is an important reason for the above negative effects. Research reveals that we should have a correct understanding of the role of homeplace-based settlement in the career development of rural-urban migrants, promote social interaction between rural-urban migrants and locals to reduce the impact of spatial mismatch.