The Contribution Of The Side-work People To Non-agriculture

In China, the number of side-work people with land assets has been increasing since 1980 s. From a historical perspective, the agricultural workforce transfer to industrial department and the rural population to cities is a universal law in the national industrialization and urbanization. From the point of international economy, every agricultural country in the process of transformation to industrial countries, will produce "agricultural workers" problem. The difference is that it happened early or late. On the hand the side-work people directly or indirectly engage in agriculture,on the other hand they spend their spare time in cities and engage in all kinds of industry to obtain remuneration as their main source of income. These workers enter into non-agricultural economic market, what kind of change and contributions for China’s non-agricultural economy? This paper examines the heterogeneity of labor resource including labor productivity and land assets between the side-work people and the fixed ones.With Cobb-Douglas production function, this paper analyses the contribution rate to non-agriculture. Upon the analysis, we find that the side-work people with land assets have higher production efficiency and are willing to work at a low salary with the support of land income in non-agriculture production. Therefore, they lower the equilibrium price in the market and make contribution to the non-agriculture economy. Hence, the paper takes “with or without land assets” as the standard for the classification of heterogeneity of labor resource and provides new thinking way to urbanization development in China.