A Empirical Study On Factors Affecting Wage Income Of Farmers In China

How to increase the income of farmers is one of the most concerns. In recent years, the Government has promoted agricultural development to increase farmers'income, but the effect is not obvious. And the surprise is that the growth of peasant income has been gradually dependent on the farmers wage income growth. This article analyzes the volatility of income from qualitative point of view of farmers since reform and opening up, and the conclusion is that wage income has become the main source of the growth peasants'income.Peasants'wage income depends on non-agricultural employment and non-agricultural employment remuneration. Factors which affect the labor market supply and demand determine wage income of farmers in two aspects. One is non-agricultural employment opportunities, and the other is remuneration for non-agricultural labor. This paper uses the panel data of 30 provinces (except Tibet) of China from 1990 to 2008 to make an empirical research study, which focused on following factors: the local level of economic development, industrialization, urban and rural employment structure, urban-rural income gap, rural industrialization and government investment in infrastructure and education, etc. This paper finds factors of farmers'wage income mainly from the macro level and the region's economic development, which is different from the microscopic study of past..The results shows that, the more developed in economy, the higher the level of industrialization, the greater urban-rural income gap, the higher level of industrialization in rural areas, the higher income that farmers will get. To increase the wage income of farmers, it mainly depends on expanding employment opportunities for workers and farmers and increasing the capacity of farmers to get jobs. Based on this conclusion, the paper proposes a number of additional wage income farmers policy, including actively developing the second, third industry and optimizing industrial structures; reasonably supporting township enterprises and private economic development in the region; and improving the overall quality of migrant workers..