Study On The Impact Of Rural Labor Mobility On Rural Economics

Large numbers of surplus laborers in agricultural sector are not able to transfer into non-agricultural sector, which is the sticking point that fazing the rural economics development. Since the very beginning of 1990s, rural labor mobility, also called "mingong tide", has become the main way after the township & village enterprise that China transfers the surplus laborers. Differing from transferring the rural laborers interiorly rural areas, labor mobility realizes the rural laborers seeking an urban job. Furthermore, labor mobility connects the rural economics with urban economics. Therefore, labor mobility has great economic significance to rural area. The impact of labor mobility on rural economics is also one of the main studying fields relating to labor mobility. Labor mobility is a reallocation process of socia1 production factors and farmer household economic resources, in the process of which, labor force transfers from the agricultural sector with lower productivity to the non-agricultural sector with higher productivity. Therefore, theoretically, labor mobility not only affects the macro-economic growth, but also the farmer household income. Intra-family income transfer means labor mobility bring along the funds flowing into the rural area. So the other question deserved to consider is that as far as the capital-scarce rural areas be concerned, whether the capital flowing in will promote the agricultural and the non-agricultural industry's development. The household with laborer out-going as the owner and the user of these capitals, whose economic activities directly decide the effects of these capitals on the rural agricultural and non-agricultural industry. Based on the theoretical analysis hereinbefore, the dissertation demonstrates the impacts of labor mobility on agricultural production, the development of rural non-agricultural industry and the farmer household income respectively through agricultural output function, Mul-logit model and the empirical income function. The study result shows that family member's out-going has a significant impact on the growth of family's cash income, but doesn't promote their family 'dealing in non-agricultural activities, on the contrary, family member's out-going plays negative roles on the family's non-agricultural activities. Also, out-going doesn't impact on the family agriculture output, but effects on the species of the crops. At the same time, the family with laborer out-going invests more capital to the agricultural production than the family without laborer out-going.