The Study On Labor Supply In Western Rural Areas

Labor supply in rural areas not only Economic (Economics of labor&Economics of development), demography and sociology studied, but also management science focused on. In general, China’s rural labor supply has gone through the "Transition Flood" to "Transition Shortage" since1980s, and this process related to the country’s household registration system, population policy, and support policies of regional economic and social development. Urban-Rural and regional differences under Dual Economic and Social, caused rural labor with the inherent power, and the relaxation of the household registration system, provided the institutional guarantee to the rural labor migrate from rural areas to urban areas. However, the reform is not completed in urban areas caused the basic rights and interests of rural labor not be protected. At the same time, the implementation of the Country’s Western Development strategy caused the central and western economic and social situation has been very improved. The western rural labor worked in eastern developed cities has appeared "Labor Shunting" and "Labor Reflowing" phenomenon. Meanwhile, the effect of the Family Planning policy in the1970s is starting to show, the new generation labor in rural areas has been reduced the supply quantity to urban areas, which lead to the "Labor Shortage". It also violates the policy aspirations of narrowing the economic disparities between urban and rural areas.This paper based on the background of the "Labor shortage" phenomenon and the argument of "Lewis Paradox" in the academic circles, after reviewed two models (Todaro Model and Lewis Model), integrated using the research methods of economics, management and sociology to build the short term and long term model to analysis the labor supply in western rural areas, thus complete the theoretical analysis to labor supply in western rural areas and clear up doubts to "Lewis Paradox".The main structure of this article has arranged five sections. The first part of paper describes the background, meaning, methods to the study, domestic and foreign research and research themes, assumptions and notion definition; the second part of this article has analyzed the feature and situation of labor in western rural areas and supply; the third part corrected the Todaro Model, and used the Todaro Extended Model to explain behavior of labor supply in short terms; the fourth part build the Long Term-Labor Supply Model to explain the shortage of labor supply in rural areas in long terms after assimilated reasonable theory of Lewis-Dual Economy Model, simultaneously, clear up doubts to "Lewis Paradox"; the last part of this article based on the previous analysis results to put forward the policy advice on improving the situation of labor supply in western rural areas. In this article, the third and fourth parts are the key element elaborated among those five sections.Unlike previous scholars, this article does not forecasting the quantity of labor supply in western rural areas, but build the Todaro Extended Model and Long Term-Labor Supply Model in theory to explain behavior of labor supply in short terms and the shortage of labor supply in rural areas in long terms, which is the great innovation of the rural labor supply theories, and has an important guiding significance to explain the "Labor shortage" problem.