Urban And Rural Labor Market And Social Security Interaction: Conditions, Mechanisms And Effects Research

Improvement of social security system should develop shoulder by shoulder with the construction of labor force market in the development of modern market economy, especially in terms of the urbanization of the agriculture labor force. Social security system is the byproduct of industrialization and urbanization, serving the development of the labor force market, which requires the adjustment of social security both in its range and level, which, in return, actively affects the former. Investigating the relationship between labor force market and social security system from the historical angel, we find that their interactive relation is stepping up to maturity with the development of industrialization and urbanization. The governments of western countries began to interfere with the high-level welfare since 1930s and the focus has been turning from fairness to efficiency since 1970s. While from 1990s on the emphasis has transformed to interference with the labor force market. And from then on, the perfect integration of social security system and labor force market has been forming. To be frank, the harmonious relationship between efficiency and fairness is that between government and market.Based on the previous literature, theoretical explanation and historical investigation, this article explores the problems in the development of labor force market and social security system, analyzes the interactive mechanism of the two factors with agricultural labor force investment, urbanization and rural area industrialization as the media, and more puts forward a theory of perfect integration of the two factors with the improvement of social security system as the base so as to step up the comparative advantage of labor force in our country.Comparative analysis shows the reasons of the deficiency in Chinese circumstance are as follows: the first is that the development of social security system is not in balance with that of labor force market, without considering the potentiality of the labor force in rural area, the absence of social security for the migrant workers and peasant working in the field is the biggest obstacle leading to the separation of urban and rural labor force. The second reason is that the political condition for the interaction of the two factors under discussion is not ready, leading to the breaking down of the interaction.At present, we think the government and social circles have reached an agreement about the relationship between social security system and construction of labor force market. Therefore, its social environment is getting better and better, and then we put forward our goal of constructing the harmonious society: with the economic condition ready and deepening of industrialization, to solve the problem will no longer meet the economical obstacles. While the political conditions are lagging behind, thus becoming the major obstruction preventing the active interaction of labor force market and social security system.In the research of the interaction mechanism, the article attempts to establish a model of the interaction between labor force market and social security system, withthe emphasis on propelling role of the agricultural labor force investment, urbanization, and agricultural industrialization to the construction of labor force market and social security system. But because the construction of social security is lagging behind the development labor force market and the development the agricultural labor force investment, urbanization, and agricultural industrialization is still not mature. Therefore the interaction mechanism of the two key factors in discussion is not establishedThe article illustrates the comparative superiority of labor force resulted from the active interaction between labor force market and social security system. We hold that with the improvement of the environment and stage for market economy through the construction of social security system, by the accumulation of labor force capital, social security system, instead of decreasing our comparative superiority and competitive ability, is bound to yield positive result and show its advantages in the process of urbanization. The comparative advantage of the labor force in our country does not only rest on its quantity, but also on its transformation efficiency and quality, and the last two are closely intertwined with social security system. That social security system stimulates the comparative advantage can be realized through the influence to the labor force market. The interaction of the two factors is the internal mechanism to stimulate the advantage of labor force market. There at least exist three approaches: it is beneficial to the constant stable supply of the agricultural labor force. It is also beneficial to the upgrading of the labor force capital. At last it is beneficial to the upgrading of industrial structure and technological structure, providing the premise for the development of knowledge economy. The comparative advantage of the labor force does not only show itself in its abundant resource but also in its quality, with the former representing the simple labor-intensive industry while the latter emphasizing the technology. We think that social security system will stimulate the development of the first and second approach, which is beneficial to the sustainable development of our economy, and that is the key to the vitality and competitive ability of our economy.China is in the fast developmental period of industrialization and urbanization, and the government has to perform the active role according to the change of labor force market, especially in terms of the provision of social security in the countryside. On the other side, the labor force market is multileveled and it is fair if there exists a reasonable difference in the social security, which is beneficial to explore to the potentiality of the labor force and to realize the balance between fairness and efficiency. And we can make the conclusion that social security card is a reasonable choice at present.