Circulatory Flow Model On The Transfer Of Rural Surplus Labor Forces

The transfer of rural surplus labor to city and non-agricultural sector is an inevitable phenomenon owning to improvement agriculture productivity and development of economic, which is also the inevitable trend of industrialization and urbanization. The fact of the western developed nations also show that the transformation of rural surplus labor force is the necessary stage in the industrialization of those countries, and it developed the prominent function in contract the income margin between city and country.There is something serious in China's transfer of rural surplus labor because of large rural population and faster increase, unperfected transfer mechanism, besides, the social security of transfer rural labor is not enough and there is still space to improve for the policy of transfer. So, it is one of the most important work of government and hottest topic of academic fields.This paper follows usual ways. First of all it make a definition of all the related concept, distinguish rural surplus labor from some concept would be confused, and make a definition of circulatory flow of rural surplus labor. Then this paper briefly summarizes related researches of domestic and foreign scholars, and gives a detail analysis on the advantage or disadvantage of those researches. In the third part there is a specific description on the analyzing process of model: the assumptions are that there are surplus labors in country, expected net income is the main power attract surplus labor and all people are rational. This paper point out all the cost and income in the process of transfer, and bring in a concept"psychological cost",therefore a circulatory transfer model is build. In the model expected net income decide whether rural surplus labor transfer to city, and real net income decide whether rural surplus labor in city go back home. There are five factors involved in the model: risk, distance, human capital, price level and nuclear family. These factors are analyzed separately on their influence in the model. Finally, according to China's real condition and factors in the model to verify whether the model is right. On the basis of the preceding analysis this paper gives some suggestion on policy.