Analysis Of Institutional Factors Hindering The Mobility Of Migrant Workers And Its Social Cost Estimation

The labor market in China has been gradually improved after nearly 40 years of reform and opening up.Laborers are the principal part of the labor market,and the migrant workers are the main force of the labor market in China.As the unique labor force in China,migrant workers is also an important part of Chinese supply-side reforms and has a profound influence on social and economic development.The institutional factors which hinder the flow of the migrant workers in China is explored in this paper,and the social and economic development losses caused by the institutional obstacles is measured by economic theory method.Firstly,the impact of a series of institutional factors such as household registration,social security,education,and employment on the flow of the migrant workers is analyzed in this paper from the perspective of institutional economics.Subsequently,the macroeconomic data is used to construct the MIMIC structural equation models to quantify and measure the social cost scale,and thus obtain the weight of the influence of each factor through analyzing.Finally,the trend of the social costs caused by the institutional obstacles to the flow of the migrant workers is analyzed according to the estimation results,and some reasonable suggestions for the current system reform in China is put forward.The analysis shows that unreasonable and imperfect system could restrict the flow of the migrant workers,affect the economic growth,undermine social fairness,and increase social costs,among them,the household registration system,employment system,and social security system are still the important systems factors that hinder the flow of migrant workers in China.The social costs should be involved in the adjustment of the policies for the migrant workers to increase the income and the urbanization in the future.