Analysis Of China's Rural Surplus Labor Force And Their Policy Implications

There are two different arguments about whether the residual labors in the rural area are abundant or not. This paper intends to use the amended direct method of residual labors and optimal theory in the economics to evaluate the rational labors in the rural area. The optimal theory is based on the minimum social cost expensed in the agriculture. According to the conclusion of this paper, in 2006, there were 103.29 million residual labors that were abundant. However, because of the agricultural capital deposit, those residual labors cannot supply the labor market at any time in need.