Rural Labor Mobility Scale And Urban-rural Income Gap At The Same Time Expand The Explanation Of The Paradox

According to the new classic theories the free flow of labors force contribute to the convergence of regional economic growth and income.China's real situation, however,conflicts with the theory.With the expanding of the scale of rural labor force the income gap between rural and urban areas has been enlarged instead of being shortened.It is regarded that not meeting the assumptions of the classic theory answers for the parodax,in particular "the homogeneous labor force" and "free-flow of labor force".Based on the dual economy theory this article first described the status of China's labor flow and the enlarging income gap between rural and urban areas which is also the paradox in this article.It then pointed out that China's rural-urban labor force belongs to Lewis model and raised four conditions on which China's labor flow would help realize income convergence.Then this article explored the impact on the income gap between urban and rural areas from five aspects such as urbanization, fiscal revenue distribution,economic development model and industrial policy orientation,human capital and Hukou system.An econometric model is then built to measure the impact of each factor and achieves sound regression result.Since time-based data is adopted this article in particular improves the econometric method. Before conducting OLS estimation,PP test method is used to ensure all the variables are second-order stationary,which gurantees that the regresion result is reliable not fake.Finally based on the econometric model and its result relevant suggestions are proposed to deal with the enlarging income gap on the background of increasingly larger rural-urban labor flow,especially strenthening the investment to improve the accumation of rurual human capital,increasing the input to rural areas and agriculture, adopting balanced and reasonable industrial mix and continuing to reform the dual Hukou system.