Study On Mechanism Of The Farmers' Employment Decision In The Rural Labor Floating Of China

The rural labor flows to industries in cities is a law of the development of economy and society, and a way to realizing industrialization and modernization in China. The floating of rural labor has a important correlation with full construction and modernization of China. It also has great meaning to the development of society and the research.Farmers make their employment decisions at risk condition because the hypothesis of complete information is out of reality. So this paper concentrates thoughts on the farmers'employment decision to research the regulation of the rural labor transfer. We build a math model on the principle of Expected utility maximization to explain how the farmers arrange their family labors between farming and non-farm work. The conclusion is following:Theorem 1: The value of margin product of farming is lower than average wage of non-farm work.Theorem 2: The price of farm produce don't have a immediate impact on the number of non-agricultural labor force from villages.Theorem 3: The number of non-farm labor force from villages changes according to the expected wage of non-farm work. The higher the wage, the more labors go to non-farm work.After that we study the result of employment decision of farmers whether is suitable, and the influences of expected wage and farmland on the rural labor flowing. We find out that the employment decision of the farmers is both rational and irrational. This is the real reason for migrant floating of the rural labors in China. Later on We prove that the expected wage of non-farm work determines where and how the rural labors flow. We also find that the farmland has the twofold effect on the rural labors flowing.Finally the government should make effort to take off the barrier between cities and villages in order that the rural labor transfers orderly. The government should establish a open and fair labors market. Providing kinds of training in various ways. The land market should be changed to help farmers shifting to citizens smoothly.