The Impact Of Income Gap On Chinese Rural Labor Force Immigration

At the beginning of our country founding, only10percent population is belong to city, so there are a large number of cheap labor force. Large mount of rural labor force pour into city with the reform and opening-up policy coming.2011is the first time that there are more urban people than the rural. However, at the beginning of2004, the Pearl River Delta, Fujian, Zhejiang and other developed regions of the southeast witnessed a wide range of "the difficulty of enrolling new workers" and "labor shortage". After that,"labor shortage" spreads form the southern coastal areas to inland areas, which are traditional labor exporting areas. The labor market changes from unlimited supply to labor shortage, which prompts us to restudy the Chinese labor market.This paper analyses the factors of Chinese labor migration based on the Lewis-Fei-Ranis Model and the Todaro mode and the framework of comparative advantage analysis in the social context of the current labor shortage. It establishes the model according to the switching regression model scribing endogenous choice by Malada and Nelson. First the reduced Probit model is due to the maximum avail. But there is selection bias during the maximum avail self-selection behavior. So we get a structural variable from the reduced Probit model to adjust the bias. Then we put the structural variable into income equation to construct both immigration income equation and non-immigration income equation. Finally we use the fitting difference of immigration income and non-immigration income as the expected income gap in the structure Probit to establish labor immigration model.It uses micro survey data of The China Health and Nutrition Survey by a series of screening and processing, and establishes the switching regression model with endogenous switching. Conclusions are as follows:i There is self-selection problem in Chinese rural labor force immigration. So the influence of self-selection should be one of factors considered in discussion the income of immigrated labor. ii Labor immigration increases the income of rural labor force. Furthermore, it narrows the income gap between the urban and the rural in a certain extent, iii Education is an important factor which impacts the income of Chinese rural labor force, and income is a significant reason for immigration, so education influences immigration indirectly, iv Expected income gap is the most important factor that effects Chinese labor immigration.According to the conclusion of the empirical analysis, our capital should put more efforts to education at beginning. Then the country be ought to encourage labor immigration and clean the obstacles with policy, and protect the benefit of immigration labor, at the same time. At last narrowing income gap between the rural and the urban is necessary. We should guide the labor force immigration with policy, and coordinate the distribution of labor force, make the human resource allocation reasonable to finish urban-rural integration and realize common prosperity.