The Effect Of The Price Distortion Of Rural Labor Force On The Economic Growth Of Urban Sector

Our country is rich in labor,but there are extremely uneven distribution in the urban and rural sectors.Large number of surplus labors still exist in rural.Since the Reform and Opening,a large number of labor in order to obtain greater income transfer the rural to cities and coastal areas,but the transferring process is not free and fair.Removing the impact of personal characteristics,the country's population control,household registration system and the urban discrimination against the migrant population and other factors make the transferring labor from rural areas in low wage level.During the past three decades,cheap labor has contributed significantly to the growth of our economy,especially in the urban sector.Low wages have allowed companies to gain more profits to expand their scale.The labor force attracts foreign investment,and the price advantage of production factors caused the rapid growth of China's industrial output of finished products,and low-wage labor force makes the city sector to obtain more income.The distorting of labor force to a certain extent plays a positive role in economic growth.However,the distortions in the transfer of labor prices in rural areas also make workers more pessimistic about future expected income and have negative effects.In recent years,China's economic growth rate has dropped significantly,the economy has stepped into a new stage of development.Based on the selection of manufacturing and construction industries in the rural areas,the paper explores the overall situation of the rural labor force and the impact on the urban economic growth,which is represented by this part of the labor force in China.First of all,this paper explains the relevant theories of the labor market and the status of China's labor market,and analyzes the reasons for the distortions in the labor market.Then we introduce an index to measure the distortions of the rural labor force with specific data and we construct the theoretical model,and point out that the change of the income of the urban sector is influenced by the change of the profit of the urban sector and the distortions of the rural labor force.Since most of the rural migrant labor is concentrated in the manufacturing and construction industries,they are more persuasive as representatives of rural labor.Then,through the Covariance test,the conclusion is drawn:Began to shift from rural to manufacturing and construction industries in urban sector labor force,as of 2014,excluding personal characteristics,the household income factors caused by wage differences on the contribution of the city sector totaled 64886 yuan.The total contribution of all rural migrant workers to the urban sector during the period from 1998 to 2014 was 75700.34 million yuan due to labor distortions.But the contribution of the rural labor force to the urban sector has slowed down compared to the past decade.The empirical results show that the distortions of rural labor transfer still play a positive role in the economic growth of the urban sector.Price change for each additional one percentage point,the output value of the degree of change will increase 0.016 percentage points.The final policy recommendations are that the government and society should work together to reduce labor distortions and compensate the rural labor force and the rural sector over the years to contribute to the urban sector;at the same time,the implementation and implementation of industrial should upgrade,make economic growth from the"factor-driven strategy" To the "innovation-driven strategy" change,invest in rural education and improve the professional quality of rural labor transfer.This paper combines the statistical analysis with the econometric analysis,not only uses the statistical model to describe and analyzes the economic contribution of the rural labor force from the absolute value,but also uses the econometric model to conclude that the economic distortions of the rural labor price increase to the urban economic growth The effect of relative change.In the past,the traditional research mainly verified the impact of the distortions of the rural labor force on the national economy,and this article will focus on the urban sector economy,because the impact of migrant mainly affect to city,which can cause people to pay more attention to the Relationship between the two subjects and the city.In this paper,the shortage is that distortion in labor is not only reflected in the price,but also reflects the lack of social security system and other non-material treatment.The main consideration in the paper is the wage distortions caused by wage differences and distortions have the risks of being underestimated.