A Study On The Impact Of Rural Labor Transfer On Urban - Rural Income Gap

The migration of the labor force is an inevitable phenomenon for the developing conuntries in the process of modernization.China’s massive shift of labor force has begun since the early1990s and it can be well illustrated by the shift of rural labor focre from agricultural department to non-agricultural department.Theoretically the migration of rural labor force can not only increase the farmers’income but also improve the agricultural productivity,thereby leading to the result of inhibiting urban-rural income gap.But according to the relevant statistical surveys about Jiangsu Province,it showed that urban-rural income gap has been enlarged instead of having been shortened in the past years with the rising scale of rural labor force migration.So is it reasonable for us to believe there is some kind of a paradox between the theory and the the reality?The effect of rural labor force migration to urban-rural income gap is analyzed empirically in this paper on the basis of Jiangsu Province.Firstly the author sorted out the recent relative reaearches about the subject and classic theories in this field in details,then made clear definitions of the key conceptions involved in this paper.After the author analysed the current situation of the rural labor focre migration and urban-rural income gap on the basis of Jiangsu Province and some certain explanations were given according to the reality. By introducing the cross-terms,the author made a study of the direct affect the rural labor migration does to urban-rural income gap, and the indirect affect the rural labor force migration does to urban-rural income gap by two different approaches which are the rural residents’ income and the agricultural comparative productivity.The empirical results are as follows:the positive direct affect that the rural labor force migration does to urban-rural income gap and the positive indirect affect the rural labor force migration does to urban-rural income gap through the approach of the rural residents’ income were significant,but the negative affect the the rural labor force migration does to urban-rural income gap through the approach of the agricultural comparative productivity was insignificant.To analyze the factors affecting urban-rural income gap comprehensively,the author divided the relative factors into four categories containing12indicators. After excluding the unrelevant variables by correlation analysis,Step by step regression method was introduced to add up significant variables into the equation one by one to establish the optimal model, the results show that:the rural migration,the economy openness,the proportion of primary industry practitioners and the proportion of primary industry output are four factors which are affecting urban-rural income gap significantlyIn the last certain explanations about the empirical analysis results were given according to the realities of Jiangsu Province.In the last chapter of this paper the author made some systematic summaries about those analysis results,then on the basis of the analysis brought forward some proposals which were as follows:accelerate the process of rural labor force migration and promote the integration of urban and rural areas;transform the development mode of foreign trade and increase farmer’s income; adjust the industrial structure of rural areas and develop featured rural economy;support science and technology on agriculture and cultivate modern farmers.