Income Mobility Of Non-farm Self-employment In China

Recently,the number of individuals engaged in non-farm self-employment activities has been increasing rapidly in both developed and developing countries.Therefore,non-farm self-employment,including innovation and entrepreneurship,are receiving increasing attention from governments.Self-employment plays a positive role in employment issues.For self-employment can promote both the employment to a certain extent and individual income in the vertical flow.With the constant exploration of income distribution,more and more researchers pay attention to the income mobility issue from the dynamic point of individual income changes at the beginning and the end.Although we cannot effectively solve the problem of increasing income disparity over a period of time,we can guarantee that every middle-income or even low-income person has the opportunity to move up to the higher class from the perspective of equal opportunity.By increasing income mobility,improving the income flow mechanisms and promoting individual changes in the income level,the negative impact from"non-widowed and uneven" social problems can be changed.This report mainly focuses on measuring the income mobility of non-farm self-employed individuals,and analyzing the factors which impact the change of the income of them.Based on the data of China Labor Force Survey(CLDS),the income mobility of both non-farm self-employed individuals and employers are measured by the transformation matrix.This data is provided by the Social Science Research Center of Sun Yat-sen University.Analyze the relationship between the non-farm self-employed individuals and employers.To explore the relationships among the factors that influencing the change of self-employed income,the regression analysis is applied in the Multinomial Logit Model.The results indicate that income mobility shows higher in self-employment.Some factors,such as the initial income status of individual,individual characteristics and human capital,significantly impact on their income changes.Accordingly,the government should promote and engage the non-farm self-employment in public in a rational way.For instance,providing training course of vocational skills to self-employed individuals,improving the social security system and subsidies policies to reduce the burden of self-employment,providing more vocational skills training and position for rural self-employed individuals to reduce the discrimination in the labor market,taking the financial means like taxation and transfer payments to reduce the class solidification.The most remarkable point of this report is the study of the change of the income of self-employed individuals,for previous researches only focused on the factors of self-employment.