Study On The Relationship Between Urban Informal Sector Employment Rural Non-agricultural Industry Employment And Urban-rural Income Gap

While our economy is developing steadily,the urban-rural income gap ratio hasincreased from 2.57 in 1978 to 3.13 in 2015.In the past few decades,the urban-rural income gap has not narrowed with the total economic volume,but has shown a trend of expansion.As a big province in the central part of China,the income gap between urban and rural areas in Shanxi Province has been increasing in recent years,and the widening of urban-rural income gap has seriously affected the benign development of the economy of Shanxi Province.In recent years,the urban informal sector in Shanxi Province has developed rapidly,and its most important impact on the coordinated development of urban and rural areas is to increase farmers' income to a certain extent by absorbing a large number of rural surplus labor.But this income is not stable for the rural labor force,so the development of the informal sectorThe effect of increasing farmers' income is limited,and there is no obvious narrowing of the gap between urban and rural income.At the same time,the rural non-agricultural industries will also absorb some rural surplus labor,and because the rural non-agricultural industries have the characteristics of higher than the agricultural yield,So it is beneficial to increase the income of farmers,and then narrow the income gap between urban and rural areas.In order to further verify the urban informal sector employment,the relationship between rural non-agricultural industry employment and urban-rural income gap,mainly through the following aspects:First,it defines the urban informal sector employment,rural non-agricultural industry employment and urban-rural income gap,and expounds the development of Shanxi Province.This paper analyzes the choice of rural surplus labor force employment in urban informal sector and rural non-agricultural industry employment in Shanxi Province.Secondly,on the basis of the existing literature,the output function is taken as the basic carrier,the departments studied in this paper are introduced into the function,and the labor force is introduced as the variable.The change of urban-rural income gap caused by the change of labor force variable is obtained.Through the relatively static analysis method often used in economics,the labor force is transformed from static to relatively static change elements.The flow between the urban informal sector and the rural non-agricultural industry leads to the conclusion that the surplus labor force engaged in the urban informal sector has a positive effect on the urban-rural income gap in Shanxi Province,while in the rural non-agricultural sector,it has a positive effect.Industrial activities are conducive to narrowing the income gap between urban and rural areas in Shanxi Province.Thirdly,through the empirical analysis of the relevant data from 1990 to 2015 in Shanxi Province,and combining the relevant test and analysis methods involved in the empirical model,This paper measures the influence of informal sector employment and rural non-agricultural industry employment on the income gap between urban and rural areas in Shanxi Province and the impact of urban-rural income gap on employment in both sectors.In 4th,through the analysis of the relationship among urban informal sector employment,rural non-agricultural industry employment and urban-rural income gap in Shanxi Province,it is found that some problems in the development of the two sectors,such as unreasonable management of urban informal sector,exist.Problems such as imperfect system,low utilization rate of rural non-agricultural industry capital,backward technology,and so on,are put forward.This paper analyzes the relationship between urban informal sector employment,rural non-agricultural industry employment and urban-rural income gap,and draws a conclusion that the increase of urban informal sector employment has aggravated the urban-rural income gap through the partial derivation of labor force variables in the production function.The increase of employment in rural non-agricultural industries has narrowed the income gap between urban and rural areas.And in the long run,thewidening of urban-rural income gap will improve the degree of the urban informal sector to absorb the labor force,and reduce the rural non-agricultural industries to absorb the degree of labor force.