Study On Transfer Of Rural Labour And Its Economic Effects In China

This analysis targets the transfer of rural labor force and the interaction between labor transferring and policy. Major factors that determine the scope of rural labor transfer and the pattern of reemployment win be explored and impacts on several key aspects of economy development brought by labor transfer will be evaluated. Finally, suggestions will be brought forward to provide more employment opportunities.This research systematically analyses the general situation of rural labor transfer and the reemployment pattern after reform, especially in recent years in China. Consequently, current problems related to rural labor transfer and reemployment will be discussed, after which welfare in a framework of market economy where labor fore can transfer unrestrictedly will be analyzed theoretically in contrast with the situation and changes of welfare in a framework of dual economy. Based on the discussion hereinbefore, a theoretical model will be induced to explain the allocation of labor time of households.The empirical analysis primarily deals with the determining factors affecting the rural labor transfer and reemployment pattern. The result shows that the rural labor transfer and flow are shaped both by the external environment and by the particular characteristics of the individual laborer and of their families. The empirical research into the employment pattern of rural labor reveals the relationship between the major external factors affecting rural labor transfer and the employment preferences of rural laborers. As is discovered, employment in nonagricultural sectors by means of trans-provincial flow is really any laborer's secondary best. In regions where there is a brighter prospect for nonagricultural employment and where nonagricultural job opportunities are more abundant, fewer rural laborers land nonagricultural jobs outside their resident regions.The empirical analysis into the second aspect chiefly evaluates the contribution made by rural labor transfer to the GDP of both in agricultural sectors and nonagricultural sectors and farmers' income. On the other hand, the influence on the pattern of wealth distribution in both urban and rural areas will be explored. The research result proves that the shift of rural labor to nonagricultural sectors has made better use of rural labor resources possible and therefore plays a positive role in the growth of the national economy in China. Meanwhile, the rural labor transferring is also a key variable that can control not only the income of farmers but also the disparity between the income of city inhabitants and that of farmers.Research into the third aspect explores major ways to increase employment opportunities from a viewpoint of macroeconomics. The results of analysis show that the expansion of employment opportunities is an essential prerequisite for the redistribution and efficient use of rural labor. Furthermore, the increase of job opportunities depends on the growth rate of state economy, the direction of the economic restructuring, the labormarket's stage of maturations, as well as the amount of effort put into it.The findings of this research will furnish our government with the necessary ground for making more rational policies to ensure efficient employment of the labor force. From a viewpoint of future development, the decisions demanded is not whether rural labor should be allowed to move about, but how the redistribution process of rural labor can be made smooth and orderly. Meanwhile, the government in China should offer more supports in terms of policy to agriculture and the development of rural areas, in order to secure a balanced growth of different geographical regions and different sectors of the national economy.