Study On The Problem Of The Farmer-turned Workers' Earning-default In Economics

The Farmer-turned Workers, a neo-labor in China, have become an important strength that affects the economy of China significantly. On one hand, it deepens the reform carried out in the countryside, promotes the city construction and economy prosperity, and creatively relates the "Three-agriculture" Problem to the industrialization, the cities and the modernization together, so it not only attributes greatly to social and economic development, but also is an effective way to solve the "Three-agriculture" Problem. On the other hand, the low earning level, heavy work intensity and poor social security condition have seriously hindered the full use of their activity, and becomes a severe hidden danger that threatens the economic prosperity, political stability and social harmony of China. Furthermore, the earning of the Farmer-turned Workers are always being delayed or owed, which makes their living in the city more difficult. Thus it is urgent, meaningful and crucial to solve the problem of the Farmer-turned Workers'earning-default.This paper is based on the analysis of the issues above and synthesize the labor economics, Game Theory and the new institutional economics and some other correlated theories and methods, analyze the origin of the problem on the Farmer-turned Workers'earning-default, so as to prefer a better solution to set with it. First of all, it analyses the demand and supply of the Farmer-turned Workers in labor economics and developmental economics, and from this found that supply much more than demand is the inducer of the problem. Also is the continuous deteriorating of this imbalance make the government can't thoroughly settle the problem up to now. Then with Game Theory, we compared the game processes and results between the Farmer-turned Workers and the employer under different conditions, and found that loss of market information, poor social supervision, not heavy enough punishment to the employer who does not pay for employees and the high cost to bring a lawsuit against the employer are the main reasons for the problem, meanwhile we found that the problem of the Farmer-turned Workers'earning-default has its penetrating institutional background, so it is the necessary product of specific institutional environment. At last, according to the new institutional economic theories, we believe that the critical way to solve this problem is institutional reform, setting up and making perfect a series of institutions to lead and manage the countryside labor move reasonably, to control the employers pay the Farmer-turned Workers normally and to protect the Farmer-turned Workers'rights and so on.The Farmer-turned Workers'earning-default is a historical phenomenon in our country. By the institution becoming perfect more and more and the social economy developing day by day, the problem will be solved in the end and so as the problem on the Farmer-turned Workers.