Urban-rural Harmony And Sustainable Development In The Process Of Urbanization Of China: Migration, Employment And Income

The third congress of the party's convention has put forward"five harmonies", in which urban-rural harmony is of vital importance. In the congress, the experts have noticed"eliminating the hukou system, implementing the mechanism of urban-rural orderly motion, divesting the unreasonable entrance constraint from the rural to urban". The main reason caused income gap of urban-rural districts is the constraint of migration. So migration should be normal and the immigrant should be employed in cities if we want to realize urban-rural harmony. Though the comprehensive research on migration, employment and income is so crucial, is very little, since historical research put emphasize on one or two aspects, we'd like to change the condition.The passage analyze the negative effect of migration on the income gap, describe the motivations, constraints and characteristics of migration, then analyze the discrimination on migrants in urban labor market and other aspects in a political economy approach. We find and criticize the reasons that urban interest groups discriminate the migrant in the neoclassical growth theory and public expenditure theory approach. The resistance of migration changes from non-historical normal institutions (such as huko system) to historical abnormal institutions (such as employment discrimination). We find the effect of migration on urban economy is determined by the trade off between demand effect and substitution effect. We find, through empirical analysis, migration has positive effect on urban economy, salary and income level of urban citizens. Owning to historical factors, however, migrant has become the scapegoat of the unemployment of urban citizens. In our model, we find the"discrimination-hostility"game may be in the trap of malignant circulation. Then, we interpret the logic in the game of"discrimination-hostility"in a coordination game approach. At last, we imply some suggestions to solve the problems that we confront.