"shortage" And The Transfer Of Rural Surplus Labor

The household contract responsibility system in rural areas was the starting point of China's reform and open-up policy. This reform of distribution system stimulated the initiative of farmers and increased agricultural output greatly. Less labor input with more benefits lead to the form of surplus rural labor. At the same time, the restriction of rural labor migration was also loosened. As a result, millions of farmer-turned-workers entered large cities. This boom of migration provided cheap labor for China's urbanization and export-oriented economy. However, lack of enough farmer-turned-workers arose from 2003 and became more and more severe in the coming years. This phenomenon has been the focus of media and scholars.This paper reviewed the labor migration theory in dual economy and found out it could not explain some phenomena of China's surplus rural labor migration nor the reason of lack of farmer-turned-workers. The author analyzed variables in classic models and tried to find out its contradictions with China's reality. Then the author amended Todaro Model with adding variables with Chinese characteristics and redefinition of some others to better explain the reason of lack of farmer-turned-workers.Recent research of surplus rural labor migration emphasize more on theoretical study rather than empirical study, which is also an important reason why there is so many disagreements in this field. Considering this, the author selected two counties from both eastern and western China as data source and managed to get 702 questionnaires. After regression of the data, the author analyzed the influencing factors of surplus rural labor migration with emphasis on the factors which have different influences on each city.Based on theoretical and empirical analysis, the author drew the conclusion that the lack of farmer-turned-workers was just the temporary inequality of demand and supply of labors. It was the normal phenomenon of economic development and no worry or government intervention is needed. However, this phenomenon is an alert of China's extensive mode of economic growth. The government should take this opportunity to lead the enterprise to capital deepening and technical renovation, forge the development mode change of the whole economy, and realize the harmonious urban and rural developments and the transition from dual society to unitary society.