Research On Wage Differential Between Urban-rural Workers

There is a wide gap between urban workers and rural laborers, some of which can be illustrated by human capital endowments while the rest can be contributed to discrimination. Registration system reform is a necessary way to increase rural laborers' wage, shorten wage differentials, and equal employment in labor market. But it encounters a lot of difficulties to carry out and deepen registration system reform.The human capital impact on wage discrimination, is analysed in this paper, between different registrations in 2003 and 2007 based on the Oaxaca-Blinder model improved by Neumark with the investigation data. Then every human capital factor is distributed and its influence on wage differentials is examined. It concludes that difference in human capital endowments between urban workers and rural laborers is the most important influence on registration wage differential, while education and experience are the most important factors of human capital endowments. So shorten difference in human capital endowments between urban workers and rural laborers is more efficient to shorten registration wage differentials than registration system reform. Thus, solutions to shorten registration wage differentials are given in multi-aspects such as rural laborers' education, train and health.