The Research On The Reason Of Rural Household's Poverty Based On The Division Of Labor Theory Of New Classical Economics

Since reform and opening-up in china, especially the " eight seven anti-poverty assaulting plan " implement our country, the population below the poverty line is reduced by a large margin, the rural poor incidence descend from 30.7% in 1978 to 2.3% in 1978, have made the great achievement. But in the new century, the poor population distribution of our country turns from relative area that concentrates on into a scattered village peasant household, So the study of poverty must be attached most importance to the poverty of rural household. The existed literature manage the neoclassical economics framework discuss the problem of poverty, ignoring the peasant's level of division of labor which is the most possible reason why the rural household become so poor. Therefore, it is necessary to research the poverty of rural household from a new angle of view which is division of labor.Using the division of labor theory of New Classical Economics analyze poverty of rural household, the paper construct two models: one is the model analyzing division of labor among all the peasant households, representing the peasant household one's own division of labor; and another one is the model analyzing peasant households participate in city's division of labor, taking agriculture and other division of labor situation of trade into account. then we get a conclusion of the general equilibrium: the higher the degree of economies of specialization and the transaction efficiency reach, the higher equilibrium level of division of labor is, thereby the higher the per capita real income of rural household is; by contraries, the lower the per capita real income of rural household is. On this basis the author empirically tested the degree of economies of specialization and transaction efficiency contribution to the poverty of rural household. the result imply that the most important reason why so many Chinese peasant households become so poor is the restrained division of labor ,includes two aspects: the division of labor among all the peasant households; the rural household participate in city's division of labor,which are caused by the low degree of economies of specialization and transaction efficiency. In order to resolve the problem, we should depend on the evolution and development of the division of labor, such as heighten the level of specialization and improve transaction efficiency.