Contribution Of Migrant Workers To Economic Growth And The Fruits They Shared

Migrant workers have made tremendous contributions to China’s economic growth, buttheir incomes are relatively low compared to their contributions. The reasons for thisphenomenon are variable, improving the income of the migrant workers in a reasonable andappropriate way is conducive to the promotion of economic growth which has importanttheoretical and practical significance.In order to measure contributions of the migrant workers they have made and incomes theshared reasonably, we use Cobb-Douglas production function to measure the contributions andcompare the gap between their incomes and contributions. In order to explore the influencingfactors, we do the research by the method of classification analysis and visits to research, thenbuild multivariate ordered Logit model to analyze. We got the conclusions as follows:(1) Migrant workers has made great contributions whose rate is16.37%, but their incomesare relatively low compared to the urban workers. The contribution of urban workers to GDP is1.63times as the migrant workers, but the income does their3.43-fold.(2) There are many reasons which lead to low incomes of the migrant workers, such aseducation background, mental status, working industry and geographical differences.(3) Increasing the income of the migrant workers is not only conducive to narrow theincome gap between urban and rural areas, but also to help expand domestic demand, evenpromote economic growth.In short, improving the labor market and the working environment, increaseing training ofmigrant workers, and establishing incentives are favorable to migrant workers to improve theirquality of work and income level.