Research On The Impact Of Inter-provincial Labor Mobility On The Regional Income Disparity In China

The relationship between labor migration and regional income disparity is one of the most concerned issues in the field of economics. Research and studies on this topic have yielded a rich harvest so far. The existing empirical researches show that labor migration narrows the income gap in some countries and regions, while it enlarges the income disparity in others. Even in the same area, different researchers draw different conclusions. Therefore, the relationship between labor migration and regional income disparity is called "Migration Puzzle" in the process of labor migration. At present, there is no clear explanations and definite conclusions on it. Under the background that inter provincial migration scale is expanding in China, this paper focuses on the issue and seek to carry out an deep examination into it based on the academic controversy,which has important theoretical and practical value to guide the inter-provincial labor mobility and narrow regional income disparities.First, this paper reviews the relative theories of labor migration, the income disparity and the relationship between labor migration and income disparity, which lays a solid academic foundation for the paper. Next, the cointegration analysis and VAR were used to test the inherent relations between the two. Then the newclassical economic model which is more suitable to display the current situation of economic development in China was adopted. And by comprehensively analyzing the effect of provincial labor migration on the income growth of immigration and emigration, the mechanism of how inter provincial migration affects regional income was revealed. Besides, according to the result of the analysis, starting from the subjects involved in micro migration, the main factors that affect the provincial labor migration were judged. Finally, based on the conclusion, countermeasures and suggestions were proposed. Through this study, the following conclusions were made:first, from the changing trend of provincial labor migration and regional income disparity, highly correlated consistence between the two exists; second, from the long-term dynamic equilibrium relationship and short-term changes, the provincial labor migration is the important factor influencing the regional income disparity; third, from the mechanism, inter provincial labor migration has a very significant effect on the income growth of emigration, while it has little effect on the income growth of immigration, which resulted from dual labor market caused by the present household registration system in China. Fourth, from the study on the influencing factors of inter-provincial labor migration through field investigation, the main factors affecting the inter-provincial migration of peasant household are the living environment, life satisfaction and family labor income.