Study On The Relationship Between The Urban-Rural Residents Income Gap And The Unemployment Rate In China

It’s not difficult to find that the income gap of urban-rural residents and unemployment rate have a positive relationship from the data of the calendar years, so that the former is the main reason for the change in unemployment rate in this paper. The theory is based on the following two points:Firstly, The unfaired feeling always being. Due to the urban-rural income gap’s existation, surplus labor in rural will transferred to urban areas where them can get more income, but the urban areas can not provide more jobs, will result in the increase in the stock of the urban labor force, thereby affecting the employment of urban residents; Secondly, the cost of labor transfer is lower than the industrial transfer. China’s current urban-rural dual structure, both urban and rural sector industrial transfer is not realistic, because its cost is much higher than the mobility of the labor force, it is only through the transfer of rural surplus labor force to narrow the gap between the income of urban and rural residents.Dynamic panel differential moment estimation as the analysis method in Empirical process, selected the lag unemployment rate as explanatory variables, reflects the unemployment inertia and others variable failed to observe. How to influnce the current urban registered unemployment rate. Comparative models, and came to the conclusion that the current and hysteresis of an urban-rural income gap have a positive impact on unemployment rate, and analyzed such as fixed assets investment, the openness, the proportion of non-agricultural industries how to affect the unemployment rate. Found that the urban-rural income gap and industry changes could be substituted each other in the affect of unemployment rate, the pull effect of opening is weakened, and the re-employment policy has a positive effect.