Research On Migrant Worker Citizenization Policy In China Based On The Aim Of Narrowing Urban-Rural Income Gap

Urbanization is not only the most important themes of the economic and social development of China in the next decades, but also the main driving force of keeping continuous, healthy and steady growth of China’s economy. However, the huge Urban-Rural Income Gap in China pose the greatest challenge to the China’s economic and social development. How to gradually narrow the Urban-Rural Income Gap through urbanization is one of the major issues that China needs to face in the future.Since the reform and opening up, especially since1980s, in order to reduce the Urban-Rural Income Gap, Chinese government implemented a series of policy aiming to help to increase farmers’ income, but the policies in practice for a long time shows that merely replying on increasing farmer’s income is already insufficient to meet the needs of overall urban-rural development, which leads to the reduced effectiveness of relevant policies. In order to solve the issue of huge urban and rural income gap fundamentally, it must reduce the rural labor surplus and encourage the rural population to transfer to urban areas, and such transfer cannot be a simple spatial displacement and career changes, but should be more of identity change, which means these transferred rural labors shall enjoy the same public services as urban citizens do.This process is a unique and complex system issue, which involves wide range of aspects, and is difficult to implement. Therefore, the urbanization process is a special experience and meanwhile a significant social reform to narrow rural income gap in the context of current macro-economic and social transformation.However, a large agricultural population transferring into the city has been going on for a long period, the non-agricultural income of transferred agricultural population continues to increase, and farmers’ living standards continue to improve, but the reality is that the income gap between urban and rural areas of our country has always been at a high level, on the premise of the income gap among urban citizens is not significantly big, one possible explanation is that the public services enjoyed by urban citizens is significantly larger than that by rural transferred population and the level of citizenization is insufficient, therefore, the purpose and entry point of this thesis is regarding to how to reduce urban rural income gap by implementation of citizenization policy.This thesis aims to reduce urban rural income gap, and the basic structure is to research on theory basis and path selection of implementation of citizenization policies.lt conducts deep analysis of influence mechanism of citizenization policy on reducing urban and rural income gap, by setting design and implementation of citizenization policies as research logical starting point, and comprehensively applying various methodologies theoretical analysis, model establishment, econometric analysis and numerical simulation, and combination of static and dynamic analysis.Computable General Equilibrium (CGE) is applied to conduct empirical analysis of the impact of citizenization policy on the urban-rural income gap, based on which, policy policy evaluation and an analysis of deviation of citizenization policy on the institutional level are conducted.Through in-depth analysis of the influence mechanism and a comprehensive evaluation of citizenization policies, this thesis systematically studied the path selection, especially the value,the subject and the manner of implementation of the citizenization policy, By theoretical analysis, general value measurement of citizenization policy is comprehensively interpreted, and basic value orientation of citizenization policy design under the unified domain of fairness and efficiency.Game theory is applied to in-depth study which subject of policy implementation is beneficial to narrow urban-rural income gap, By building dynamic general equilibrium model of two departments, to explore the approaches of citizenizatin policy implementation, and based on which, sys-GMM and numerical simulation methods is applied to identify and choose the citizenization path that helps to narrow the income gap between urban and rural areas; Based on the solid preparation of relevant theories, this thesis carried out in-depth analysis of relevant systems, and associated theoretical and empirical analysis to arrive at a final conclusion. Research falls into five parts, and eight chapters in total.This paper includes eight chapters, among which, chapter4and5are the core of the paper. The paper specific structure as follows:The first part is Chapter1Introduction. Firstly, we raise the question, describe the background of the question and the significance, and give a brief description of research methods and basic framework; Secondly, to prepare for the later part, we define the related concepts by the discrimination of them and clarify the essential meaning of those confusing concepts; Finally, we illustrate the main content, the main innovations and shortcomings of this paper.The second part which includes Chapter2and3is the introduction of related literature and influence mechanism.Chapter2is the literature review. By introducing the relevant literature of urbanization and urban-rural income gap at home and abroad, we lay the theoretical foundation for the following research. Chapter3is the influence mechanism of urbanization policies to the urban-rural income gap. By the interpretation of influence mechanism, we deeply analysis the institution foundation of the impaction of household registration system on the urban-rural income gap and make a comprehensive evaluation of the urbanization policies.The third part including Chapter4, is the empirical analysis of the impaction of urbanization policies on the urban-rural income gap.Chapter4is the focal point of this paper, Firstly, we use the general equilibrium model (CGE) to build our model with which we do empirical analysis of the impaction of urbanization policies on the urban-rural income gap; secondly, according to the results of empirical analysis, we evaluate the urbanization policies; finally, we analysis the deviations of the urbanization policies and the institutional reasons.The fourth part including Chapters5and6propose the implementation of strategies and policy recommendations.Chapter5is the core of this paper. This part is not only the theoretical response to the deviations of urbanization policies, but also a theoretical basis for further research. Firstly, by discussing the general value of the urbanization policies, we identify that we should promote urbanization from the perspective of fairness and efficiency; secondly, in the framework of the principal-agent theory, we gamely analysis the implementation subject of the urbanization; finally, by the dynamic general equilibrium model, we theoretically analysis the effects of different urbanization ways to the urban-rural income gap, and use the system GMM (sys-GMM) method to do empirical testing and the dynamic simulation of the impaction.The Chapter6is the policy recommendations section. In this chapter, we propose policy recommendations from the aspects of financial institution, improving the government action and the steps of urbanization adjustment, etc.The fifth part is Chapter7of the conclusion. This chapter summarizes the full text.we get the conclusions based on the research and put forward the further research direction, according to the unresolved problems,.The main innovation of this paper is introduced below. In theoretical aspects, On the basis of the classical economic theory, by drawing on the results of previous studies, the system analyzes the impact of public policy on Urban-Rural Income Gap in China on the background of the rapid progress of urbanization. Moreover,combining with China’s actual conditions, changing from the current household registration system as a logical starting point for the study before analyzing the impact of changes in household registration system based on the public policy of Urban-Rural Income Gap in China. Furthermore,the route implementation should be organized by considering the strategy from the public value of targets, the embodiment of the subject in detail, and the reasonable propositions. In terms of methods,Computable General Equilibrium (CGE) will be used for panoramic display of the public policy implications of the mechanism related to urban-rural income gap, then, The utilization of sys-GMM in the current empirical analysis on the impact of different measures of public Urban-Rural Income Gap in China. Furthermore, by building game models with the implementation of the different public policies involved, analysis in detail for the development of appropriate policies to demonstrate a theoretical basis of current urban-rural income gap influence from different policies implementation.The inadequacies of this paper include several points. Firstly,the Urban-Rural Income Gap in China is just one theoretical perspective of public policy adjustments,but the marketing activities are ignored, more specifically,the hypothesis of unchanged salary of transferred population for labor is not a truth in reality, because citizenization must lead to a salary change in the market and then result in the change in consumption activities. Secondly, in analysis of the citizenization policies affecting income inequality,static analysis is preferred with much limitation, which is quite different from the truth. Actually, there will be a considerable longer period for mechanism generation, which will lead to a dynamic characteristic. Thirdly,the limitation of choosing a variable for describing income inequality is urban-rural income gap, which does not account for regional and industrial income gap. Nonetheless, the entity of implementing citizenization policies is local government, therefore, the evaluation of policies could be limited.