Analysis Of Non-farming Labor Supply Of Rural Labor Force In China Under The Limit Of Minimum Necessity Expenditure

Based on analysing and collating the classical labor supply theory,the dissertation finds that mainstream economics pays little attention to the problem of minimum necessity expenditure existing in many developing countries,labor market.Therefore,in the study of the rural labor supply in China,this study uses the minimum necessary expenditure as the constraint condition,and improves the classical labor supply model,so as to better explain the social reality of the inflection point wage and the minimum wage.The improvement of the labor supply model reveals that considering the constraints of the minimum necessity expenditure as the labor supply,there is an inflection point in labor supply.When the wage is higher than the wage at the inflection point,the labor supply curve is the sloping upward curve in the classical labor supply theory.When the wage is lower than the wage at the inflection point,the labor force will increase the labor supply under the constraint of the minimum necessary expenditure as the wage decreases,that is,labor supply and wage inverse under low wage conditions.When labor demand in the market is insufficient or the labor supply is relatively surplus,wage will continue to decrease until they tend to the reservation wage.As the largest developing country,China's rural labor force is relatively large.After the reform and opening up,China's economy boomed,the large-scale rural labor transferred,the number of non-farming employment increased(Luo Xiaolan,2007),but they were more in the secondary labor market due to their education,the household registration system and other factors,and their real wage had no growth or even declined.The phenomenon of reverse change in the wage and labor supply cannot be explained by the current mainstream economic theory.After careful analysis of the causes of this phenomenon,we believe that the reason why this phenomenon occurs is that the constraint on the minimum necessary expenditure of labor force is not considered in the mainstream economics.After the introduction of the limit of the minimum necessary expenditure,the contradiction in the labor supply is solved.This research analyzes the related theories,makes an empirical analysis using the related data of China,confirms that the wages and labor supply reverse,and finds the influencing factors of China's rural labor supply so as to provide reference for policy suggestions.As for the research structure,the dissertation is divided into three parts.First,researching the problem of the overall non-farming labor supply of China's rural labor force.The plight of the non-farming labor supply in China is put forward,which belongs to the research topics.Comparatively,the treatment and employment conditions of Chinese rural labor force's non-farming employment are relatively poor,and the labor supply of rural non-farming labor force is limited to the minimum necessary expenditure.This part analyzes the contradiction between theory and practice,collates theories,and improves relevant models,and establishes a labor supply model under the constraint of minimum necessary expenditure.Second,empirical analysis.Based on the analysis of the total non-farming labor supply of rural labor force in China,the dissertation tests the labor supply model under the condition of minimum necessary expenditure constraint,and discusses the labor supply curve and the influencing factors of labor supply,and analyzes some basic rules of the model.Third,applied research.On the basis of the second part,this part analyzes the application of the model,which is divided into two levels:1.Considering the supply of the rural new generation and the old generation of migrant workers in China.On the basis of the overall non-farming labor supply in the rural labor force,the dissertation analyzes the different age groups in labor force respectively.The basic conclusion is that there are differences between the new generation and the old generation of migrant workers in education,culture and values.The new generation of migrant workers have no hard-working spirit of the old generation of migrant workers and so on,to some extent,their ability to resist pressure is also weak.However,the new generation of migrant workers are more educated and have more recognition of urban life,which will have different effects on their labor supply behavior.2.The problem of non-farming labor supply in rural labor groups with different education.The education of workers in the labor market has important influence on their job seeking and employment,workers with different education in the labor market level are not the same,but also for labor force in the secondary labor market,especially with the development of Chinese economy and adjustment and upgrading of industrial structure,the demand for high-level technicians is huge.For rural labor groups with different education,their labor supply behaviors are different,that is to say,there is an inflection point of education,labor supply behaviors are different above and below the inflection point.