Theoretical And Empirical Analysis Of Non-farm Employment Affect The Income Of Rural Residents

As a developing country with 60% rural pupulation, our country has a matter of primary importance all along, issues of agriculture, farmer and rural area. We can not achieve our goals of modernization and all-round well-off society without the modernization of agriculture and rural area and the raising of farmers income. Our country has large members of superfluous labor force which can not be absorbed in branch of farming because of the large population and limited land. These years rural labor in large quantities has been absorded in non-agricultural sectors as economic development comes, which plays a positive role in development of rural economy and narrowing the rural income inequality.This paper focus effort on the two important economic phenomeno in rural economy: widening of income gap in residents and mass transfer of rural labor. The change of agriculture production constituent form, industrial structure and employment structure widens the income gap in rural labor. The proper income gap can improve economic efficiency and promote economic development and the overlarge income gap, especially caused by unreasonable factors will violate the principle of socialism equality and bring in social instablity. Using statistical data since 1978, this paper analyzes the cause of income gap from the angle of rural residents'net income and non-agriculture income, defines the short and long-term relationship among the rural residents income, agriculture industry and non-agriculture employment, and does empirical analysis on whether increasing agriculture production and non-agriculture employment of rural residents can improve rural residents income.Accorading to economic development theory, transferring superfluous rural labor force to non-agriculture sectors is the basic way to increasing farmers income and narrowing income gap. This paper presents the background of rural labor employment in non-agriculture sectors, the internal and external cause of rural labor employment in non-agriculture sectors and the general situation of rural labor employment in non-agriculture sectors since China's open and reform. On basis of this, this paper introduces three main way of promoting rural labor employment in non-agriculture sectors in detail: developing township enterprises, accelarating urbanization and household diversified management in rural.