China The Transfer Of Rural Surplus Labor Obstacles Dual Labor Market Segmentation

The key to settling the issues concerning agriculture, countryside and farmers, is guiding the farmers into the cities. However, the transferring surplus rural labors have to face various obstacles, not only including the employment pressure China now is facing, but also including all kinds of economic and institutional impediments during this process.This dissertation starts from the special historical background of the transfer of China's surplus rural labors. With the help of the Labor Market Segmentation (LMS) theories, we try to offer a systematic analysis over the labor market segment problems now surplus rural labors are facing, and in so doing offer a unique angle of view over the influence the LMS exerts on the transfer of China's surplus rural labors.This dissertation tries to illustrate this standpoint: the entry into cities of the surplus rural labors is necessary and irreversible. And due to the disequilibrium of the employment environment China is now facing, the unemployment of the surplus rural labors, who enter the cities, is inevitable as well. With the development of the economy and the progress of the urbanization, this phenomenon will be eventually alleviated. From the analyses we make, the LMS has blocked and is blocking the transfer of surplus rural labors in many ways. Apart from the institutional transfer obstacles, we cannot ignore the low human capital of surplus rural labors as an important obstacle. The LMS would further cumber the transfer of surplus rural labors through its influence on the human capital investment of surplus rural labors, which in turn would worsen the labor market segmentation. If we want to solve the problem of surplus rural labors, we have to put great emphasis on the human capital investment of the surplus rural labors.