The Relationship Between Labor Transfer And Income Distribution Of Urban And Rural Areas

On the overall situation and new period of global reform and development, China, must experience a process of continued adjusting and optimizing the industrial structure with the changes of labor transfer and income distribution between urban and rural areas. Thus, from the perspective of changes with industrial structure to study on the relationships mentioned above by method of both theoretical and empirical ones to put forward the targeted policy suggestions which will be of important significance when facing up with the economic arracks from inside and outside.This essay, firstly, has referenced on classical theories on the relationships between labor transfer and income distribution with urban and rural sectors with the conclusion on positive effect from industrial structure changes to both of them; at the meantime, introduces the current main points and advances on this subject and finds out the less research from the point of industrial structure changes which becomes the breakthrough to handle with for providing the new perspective to know about the whole relationship among them. Secondly, the author summarizes the interactive relationships among the changes of industrial structure, labor transfer and income distribution with urban and rural sectors from the point of influence mechanism with the theoretical study, which enriches and improves the research on this filed. Then, the author has a detailed description on situations of industrial structure change at Shandong province, as well as the working conditions of the rest labor transfer and income distribution with urban and rural sectors with the result of still presenting obviously extensive features, as a whole, on style of economic increase at Shandong Province, lacking the absorptive capacity to labor from the second and third industry and the widening trend of income gap between urban and rural sectors for a long time. As an example of Shandong Province chartered of typicality and representativeness from the perspective of the changing industrial structure to study the relationship between them which will be of the vital reference value and directive significance for theoretical study of local economic development. On base of descriptive analysis, the essay makes an empirical test after handling with these statistical materials. Building with the VAR model to have the Granger causality test, pulse response and variance decomposition analysis, the results are drown that there is no causality relationship between changes of industrial structure and income distribution with rural and urban areas, strongly mutual causality relationship between labor transfer and income distribution and single causality relationship between changes of industrial structure and labor transfer; The influence from changes of industrial structure to labor transfer gets bigger and stable in mid-term and that to income distribution with rural and urban areas becomes negative from positive and smaller continuously. Finally, the author put forward the suggestions that vigorously promoting industrial structure adjustment to achieve the rationalization and advancement of industrial structure, eliminating the obstacle of labor transfer by properly directing with it, speeding up the reform of income distribution system to complete the fair and reasonable income distribution.