A Study On The Supply And Demand In Rural Labor Force Transfer Training

The Rural Labour Force Training program (RLFT), launched by the Chinese government in2003, is aimed at improving the rural labour force’s skills for employment in order to meet industrial development needs. However, the reality is that there seems to be a lack of enthusiasm in the Rural Labour force training and government training participation rate is lower. Also, designated training institutions are reluctant to assume the task of government training.The purpose of this study is to analyze and illuminate the contradiction between supply and demand in RLFT.It aims to provide a reference for improving the quality of government training and participation rate, as well as build and improve on mechanisms of government training policy. In order to implement RLFT, the government has commissioned programs involving:local governments (supply), training institutions (agent), rural labour (Trainee) to provide the necessary skills. It is this tripartite interaction in training and labour market that constitutes the basic starting point of the analysis in this study.From the training supply point of view, general training with the economic externality will lead to reduced private investment training incentive, this training market failure, caused by externality, provides the government a theoretical basis to intervene in the training market. To correct the inefficient allocation of training resources caused by externalities, aside from direct government provided training programs, entrusting the various social training institutions to provide training is an effective way of applying proper market methods. The effectiveness of training depends on the principal-agent training mode, training products (technology), services with the trainees, as well as the degree of matching of the labour market skills requirements.From the training demand point of view, the labour force in rural areas lack enthusiasm on the government-supported training programs. That, essentially, is a rational choice after comparing the cost and benefit of the training. The training needs of the rural labour force arise due to the demand of labour market, thus, the benefit of training will be achieved ultimately through non-agricultural employment on the labour market. In the government-supported training program, the cost of training is partly or completely provided for by the government. The capability for employment, as well as the ability to realize what kind, determines the cost of labour force looking for work and the expected revenue. In the circumstance that the labour market is not complete, the market segmentation is increasing and the prospect of employment is unknown. Training risk caused by employment uncertainty will inevitably reduce the trainee’s participation in the trainingIn view of the two aspects mentioned above, based on human capital theory, transfer employment theory, externality effect, general term market failure and customer satisfaction theory, Combined with the normative analysis and empirical analysis obtained from the national bureau of statistics data and field investigation data, we can analyse the factors that restrict RLFT participation in the government-supported training programs in depth and evaluate the government training achievements from customer satisfaction degree perspective. According to the results of analysis, it is proposed to construct the ideas and supporting measures of the government training programs through a tripartite interaction mechanism. The main contents and conclusions are as follows:(1) Under the Principal-agent training mode, the training behaviours based on self-interest demands of the fiduciary training vocational technical school and other designated training institutions is also an important part that influences the implementation effect of the government training programs. From the feedback effects of the designated training institutions, Shortage of students is the greatest difficulty that the training institution faces. Shortage of the hardware and software facilities of the training institutions, lack of incentive caused by the low training subsidy standard, less attention towards the occupational skill testing and certificate and so on, restricts the designated training institutions to improve the quality of training. The feedback effect of the training institutions contrast the low efficiency of the rural labour transference training programs, and expose the defects of the mechanism of government training programs. These can be shown as follows:①The lack of a solid rural basic education mechanism dependent on which skills can be acquired and developed;②The lack of an effective interactive collaboration mechanism in which the tripartite can actively participate;③The lack of an Incentive mechanism which can effectively promote training system to provide medium-and long-term high-level skills;④The lack of an evaluation mechanism which can effectively evaluate and supervise the skill training quality.(2) Informal employment is an important way for RLFT to realize non-agricultural employment in urban labour market. Low employment security, high employment flow and high employment volatility caused by Informal employment highlights the high vulnerability of RLFT towards non-agricultural employment. Under the conditions in our country’s current labour market, strengthening the training investment and output risk will impact the training income expectations. High employment vulnerability has a negative impact on its training decision. The specific performances are:①The trend of market’s rejection for low skill labour, employment difficulty increases and income anticipation lowers;②Informal departments’low rate of training return reduces income expectations, inhibiting individual investment;③High job mobility reduces the willingness of enterprises towards investment and employees towards training.(3) From the point of personal demand for RLFT training, the willingness of potential rural labour force training is high but in reality, the proportion is low. The uncertainty of training investment becomes the first restricting factor of rural labour force training investment decisions. The main factors that influence the willingness of skills training of the rural labour force include the trainees’age, the view towards the effect of training, the training experience and the community’s labour qualification requirements etc. Based on the satisfaction of the farmers, the empirical results indicate that the satisfaction index of rural labour force towards the government training policy is3.42which is equivalent to68%, the mid-level.In summary, this study proposes the following policy suggestions:①Ensure the quality of training by promoting the social partnership through tripartite interaction mechanism;②Perfect the’incentive mechanism’to encourage enterprise and personal training;③improve on the information services and strengthening training management;④Increasing investment in education highlighting training policy to improve growth of new rural labour force.