| For a long time, China is famous for its rich labor in the world, how to solve the problem of agricultural surplus has been a intractable problem plagued scholars and government. The theory of ―population burden‖ also has been the mainstream of theoretical circle. Therefore, China has implemented rigorous family planning policy since the 1980 s, which has made certain achievements in controlling excessive growth of population and improving the people’s quality of life, but also led to a series of social and economic problems such as aging population, rising dependency ratio, ―becoming old before rich‖ and so on, even causing the phenomenon of ―Labor shortage‖ all over the country around 2003. These situations indicate Lewis turning point is coming ahead of time, and labor supply turned into limited. Despite it is far from consensus about whether the labor supply has turned limited from unlimited nationwide, the characteristic of limited supply of agricultural labor force is obvious in Xinjiang because of its regional characteristics such as unique environment of human and geography, ―big agriculture‖ industrial structure, and ―semi-enclosed‖ Labour market, it is hard for labor supply to meet the demand of upgrade of industrial structure, new-type urbanization and leaping development. Which will encourage the government and enterprises to pay more attention to the allocation efficiency of labor resources, and will effect profoundly on the change of economic growth pattern, adjustment of industrial structure, integration of urban and rural, and marketization process. After Correct understanding the properties of labor supply in Xinjiang, analyzing the problems existing in the process of labor allocation, dipping into the reasons of its origin and existence, and exploring the path and method of optimal labor allocation, it will be significant for government to formulate the development policy, for enterprise to make decisions on the industrial structure, and for workers to adjust employment concept,and be help for providing a theoretical reference to cope with the shortage of labor resource, to improve the efficiency of labor allocation, and to promote the sustainable economy development,From the present situation of labor supply and demand in Xinjiang, combined with the theory of limited supply of labor force, this paper gets the preliminary conclusion that the surplus of agricultural labor is not obvious and Xinjiang’s labor supply has transited to finite supply after clear it’s form. which shows it has an important practical significance to study the allocation efficiency of labor force. Then it calculates the macroscopic allocation efficiency of the labor force by using the improved methods of growth decomposition and index analysis, the expanded Cobb-Douglas function, and DEA-Malmquist model, try to find problems that exist in the process of labor allocation, and factors affect efficiency of labor allocation. Then it studies the effect of labor allocation on urban-rural income gap,industrial restructuring,and regional harmonious development,by using ECM model, Oaxaca-Blinder model, and βconvergence model and so on. As a specific research, this thesis studies the impact of labor transfer on the agricultural production of Xinjiang production and Construction Corps. Finally, we put forward policy suggestions according to the results of this paper such as increasing labor participation rate, adjusting labor policies, innovating labor allocation, optimizing industrial structure, implementing unified family planning policy between urban and rural and unified family planning policy among nationalities, and eliminating the phenomenon of the labor market segmentation between Xinjiang Production and Construction Corps and other places.Chapter 1 mainly elaborates research background and topic significance in this paper, and briefly introduces the research ideas, research contents and research methods, which lays a theoretical foundation for the choice of topic, the organization of ideas, and the determination of research direction.Chapter 2 clarifies the basic theory of supporting this research,makes reviews of the existing research results and opinions, defines such concepts as labor allocation, allocation efficiency and so on, introduces the measurement methods of Macro allocation efficiency. On the basis of summing up the various concepts of macro allocation efficiency and learning from the views of Farrell(1957), Fare(1985), Xu Xianxiang(2001,2002)and Hao Daming(2007), Macro allocation efficiency of labor is defined as economic growth effect caused by the change of the structure of the labor force in this thesis, and make a moderate expansion of the efficiency from economic to social, so clears the target and scope of the study.Chapter 3 first studies the forms of agricultural labor supply changed from unlimited to limited in Xinjiang, according to the present status of labor demand and supply, and the trends of population dependency ratio, aging degree, migrant wages, and the gap between agricultural labor productivity and farmer’s real wage, points out that agricultural limited supply of labor may come ahead of time in a particular area of the same country. After conducting multi-dimensional analysis on the reasons for this transition, this thesis find that unreasonable structure of labor force allocation is the main reason of causing a limited supply of labor, so points out the necessity of optimizing the allocation of labor structure and improving labor force allocation efficiency.chapter 4 descibes current situation of utilization ratio and efficiency of the labor force in Xinjiang.Then, analysises and evaluates the economic effect of labor input from two angles of contribution rate and marginal effect, after the theoretical relationship between the number of labor and economic growth is Clarified.In the next chapter 5 to chapter 7, it calculates the efficiency of labor allocation from three aspects respectively, namely, allocation among industry structures, regions, and allocation between urban and rural, then deeply analyzed the main factors that may influence allocation of labor. In addition, it empirically studies the influence of labor configuration on urbanization, industrialization, urban-rural income gap, balanced regional development.Chapter 8 is about a special research, Xinjiang Production and Construction Corps is one of the important part of Xinjiang Uygur Autonomous, it has a lot of particularity, agriculture is the basic industry,which face huge challenges in recent years with the agricultural labor transfer from rural to urban. so this chapter make a special study on the impact of agricultural production caused by labor transfer.In chapter 9, the main conclusion of this dissertation are summarized, and corresponding policy and recommendations are put forward.The mainly conclusions of this study can be summarized as follows:(1) The characteristics of agricultural labor supply has been quite obvious in Xinjiang, and social economy has been influenced comprehensively and profoundly by this transition.(2)The reason of limited labor supply at this stage is not the shortage of total workforce, but the low labor participation rate and the inharmonious between jobs structure and industrial structure.(3) Labor itself is a scarce factor of production in Xinjiang, therefore, the number of labor input make an essential impact on economic growth, but the status of lower participation rate and lower education level of the labor force has counteracted the positive effect which acts on economic growth by the increasement of workforce.(4)Allocation efficiency of the labor between rural and urban in Xinjiang is very low, due to the small change of labor’s configuration structure of urban-rural caused by the diffirent family planning policy between urban-rural and the diffirent family planning policy among nationalities. Furthermore, it is not obvious for urbanization to narrow the gap between urban and rural areas.(5) To adjust labor allocation structure among industries can improve the allocation efficiency, but the backward industrial structure of Xinjiang restricts the improvement.(6) Allocation efficiency of the labor can be improved when they flow from one region to another, but is restricted by non-market factors affecting labor mobility. Furthermore, allocation efficiency of labor force among different areas fluctuates strongly with time.(7) The inter-provincial migration of the labor force plays a significant role in the process of promoting economic growth in Xinjiang, and has an important influence on narrowing the economic gap between Xinjiang and the developed provinces. Nevertheless, the positive effects are counteracted by the sharp reduction of the number of immigrants moving in Xinjiang from other provinces.( 8) The loss of agricultural labor force has a negative effect on the agricultural production, but because of the non-skill-based techniques for agricultural production in Xinjiang Production and Construction Corps, the loss of labor quality does not have a significant impact on agricultural output.The main innovation in this paper are in three aspects as follows: first, it is the first time for this thesis to raise the viewpoint that the limited supply of agriculture labor may arrive ahead of schedule for certain areas within the same country, which enriching the theory of labor under the circumstance of finite supply. Second, in research methodology, this thesis questions the existing decomposition method of economic growth rate and improves it, and derives a general decomposition formula for the multi-factor index to avoid the incomplete decomposition in method of traditional index decomposition. Finally, this article expand research content of allocation efficiency from economic efficiency to socil efficiency, and breaks the content limitation only involving the allocation efficiency of labor between urban and rural, or among industries, and starts a comprehensive study on the allocation efficiency of labor among regions and provinces.
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