A Research On The Income And Living Situation Of Migrant Rural Workers Of China

After the reform and opening up ,waves of migrant rural workers has become an important social phenomenon. A large number of migrant rural workers has made tremendous contributions for the industrialization and urbanization of China, and has become a very important group in Chinese economic development. The income and living conditions of migrant rural workers is the key to China's sustainable economic development and social harmony. So the issue is not just an economic issue, but also an important social and political problem, caused great concern in government and academia. This paper first reviewed the history and current situation of migrant rural workers, then used labor value theory of Marxist political economy, the wage theory of new classical economics and modern wage theory as a theoretical basis, to investigate the income and social life situation of physical migrant rural workers, technology-based migrant rural workers and farmer entrepreneurs. Finally, based on the main conclusions drowned earlier, this paper proposed several suggestions to increase the income level of migrant rural workers and improve their living conditions.This study found that, whether based on Marx's labor value theory, or the wage theory of new classical economics, or the modern wage theory, physical-based migrant rural workers are not destined to have a higher income.The reason is the share of education and training of their labor force value is too small, coupled with the oversupply in the labor market and weak bargaining power. Physical-based migrant rural workers working in the rural has an income level lower than those who do the same job in the city. Becase of the low income levels, their living condition is relatively poor. For example, their working and living conditions are very bad; food consumption account for the largest proportion of their consumption;they can't afford to attend training; they can't afford their children's high cost of schooling in the city; their children feel lonely, self-esteem, self-closing alone in rural areas,which is detrimental to their physical and mental health.Technology-based migrant rural workers have a higher income level and better living condition than physical migrant rural workers. Because they have relatively larger share of education and training,higher marginal output, coupled with short supply in the labor market led to their strong bargaining power.Higher income levels means better the living conditions than the physical-based migrant rural workers, for example, the working and living environment is better than the latter; the proportion of food consumption is smaller than the latter, the proportion of housing, car, transportation fees is larger; access to training more than the latter;they can afford their children's high cost of schooling in the city.The income of farmer entrepreneurs is much higer than physical and technology-based migrant rural workers.Their income is not only waging income, but also profits of investment. Wage income of farmer entrepreneurs is generally much higher than the latter two,which mainly because of higher proportion of education and training, together with their managing talent can indirectly created more value than the latter two in unit time. Meanwhile, the profit income accounted for a large part of the total income of farmer entrepreneurs. High-income level means better living condition than physical and technology-based migrant rural workers. For example, their working and living environment is better than the latter two; food consumption account for a smaller proportion in their total consumption; the proportion of housing, car, transportation and entertainment fees in their total consumption is much higer than the latter two; although they have little time for training, they contact various kinds of people when working, and gathering information, this is another type of training;. They are generally able to send their children to the nearest city to study; their enjoyment of education is general lybetter than the latter two.Finally, this paper proposes the following suggestions to raise the income level and to improve their living conditions of migrant rural workers: to promote the development of rural private enterprises; to encourage farmers to start their own business; to increase investment in human capital, including increased investment in basic education and vocational and technical education and training; to strengthen the reform fo"hukou"system.