China And Africa Relationship Study Of Informal Employment And Urbanization

Since the reform and opening-up policy in1978, China has experienced a rapid development stage of urbanization. The informal employment has developed quickly at the same time. There are close relationship between informal employment and urbanization in China. Because on one hand, the rural surplus labor move into the cities, enlarge the urban population, yet they can only informal employed because of policy limitation; On the other hand, the urbanization creates a great many of informal job positions in city. From this background, three basic assumptions are made:1) Informal employment and urbanization has high correlation.2) Informal employment has push efforts on urbanization; 3) Urbanization has pull efforts on informal employment. Then based on relevant theory and time series data from 1978 to 2007, this paper analyzed the relation between informal employment and urbanization in China.The content of this study contains five chapters. The first chapter raises the question of this study, based on the observation of the fast development of urbanization and informal employment. The second chapter reviews the existed theory and literature of urbanization and informal employment to establish the theoretical relationship between them and classifies the concepts of informal employment and urbanization of this study. The third chapter calculates the number of informal employment and studies the situation of urbanization and informal employment in China. Chapter Four verified the assumption by designing theory and regression models. Chapter Five summarizes the finding of this study, discusses the shortcoming of this study and the problem which can be studied in the future.Some conclusions drawn from the analysis shows that:First, there is a high degree of correlation between the urbanization and the informal employment. Second, the informal employment promotes urbanization, the contribution to the growth of cities'economic and population achieves 17% and 32%. Third, the urbanization informal also has a positive effect on employment through three channels. Fourth, the relationship between the urbanization and the informal employment presents a Inverted N-curve, that is, with the development of urbanization, the rate of informal employment fall down after raising after a period of time. The results verified the assumptions put forward.