The Influence Of Intensity And Path Which In Formal Sector HAS On The Residents

Owing to the trait of" low entering doorsill’、" low labor costs"、" lower requirement of knowledge " and " more jobs requirement ", Informal employment has become the effective means expanding employment and relieving pressure.Though much literature has agreed that the informal sector holds considerable sway in residents’income,they didn’t study and quantize much about the way how informal sector effect the residents、the Influence strength and the influence path. This can’t favor making police guides of informal sector and optimize the income distribution system. Because of this, based on the2008SNA, this articles elaborate the statistics meaning、the production characteristics and the formation mechanism of the informal sector,and depict directions and paths how the informal sector effect the residents of all levels.With the establishment of China’s2008social accounting matrix that contain informal sector, using SAM-based multiplier method and path analysis, this article found that the influence strength and path that informal sector has put on the urban residents and rural residents is significant different. For rural residents, due to the transfer population of those mostly belong to the dual labor market segmentation of the secondary labor, informal sector has greater and faster influence on the low income residents; for urban residents, because some informal sector has higher return on capital, part of the high earners would not enter the formal sector but only stay in the informal sector, but for those urban low-income, informal sector have become their living way. AS for the effecting path, the expansion of the informal sector directly influenced individual element income, and the distribution of the individual element increased the household income in a short time. For rural residents, this income effect is more obvious. Beyond that, the expansion of the informal sector leading to the expansion of other sector. The added value made by the expansion increased the income of urban highest-income by capital element, and increased the income of urban lowest-income by labor element.