A Study On The Influencing Factors Of Peasant Workers' Consumption Ability

The problems of rural peasant workers’consumption in China exist for a long time. From a macro perspective, it has to do with the balance development of the national economic and a fair distribution of national income. If the problems exist for a long time, it will hinder the smooth and healthy development of national economy. From a micro point of view, this problem is related to peasant workers’quality of life and vital interests. Therefore, improving peasant workers’ consumption abilty is not only an important way of transformation from investment to consumption, but also the reality demand to improve the peasant workers’life quality in a people-oriented society.The studies of peasant workers’ consumption differ from each other because of the reseach angle, range and method. In short, the existing reseaches conclud consumption ability, consumer behavior and consumption idea. The governments also take measures from price subsidies, infrastructure construction, social security system,etc. to stimulate and support the consumption. But we all know, the government’s preferential policies are not a long-term solution. The external hard power of peasant workers’ consumption can be solved through the national macroeconomic regulation and control, but if the soft power:consumption ability, which plays a key role on the consumer behavior and consumption idea can not be improved, the government subsidies and the improvement of the social security system will only add the state financial burden and breed more lazy residents. The construction of infrastructure can only lead to overcapacity, causing the waste of the nation’s wealth.When comes to the study of peasant workers’ consumption ability, almost all of the documents choose urban wage as the explained variable, but as for the migrant workers are closely related to the rural, the rural incomes especially the agricultural income also affects the migrant workers consumption ability to a certain extent. This paper uses the project "The Studies of Migrant Workers’Urbanization Effect Based on the Urban and Rural Consumption Difference". The group made a survey from Dec.2012 to Mar. 2013, and collected 1077 valid sample data. This paper takes consideration of the duality of migrant workers’identity, the duality of income and comsumption. With the help of Life Cycle Theory, it has a theoretical analysis on the influencing factors of peasant workers’ consumption ability, conluding that urban wage, rural agricultural income, pension and health expenditure, savings, and duality income gap between urban and rural areas is the main factors that affect the peasant workers’ consumption ability.Through SPSS software, we have a multiple linear stepwise regression for peasant workers’ consumption ability. It turns out that:firstly, the rural income elasticity of spending is greater than the urban wage elasticity of spending; secondly, pension and health expenditure has a promoting effect on migrant workers’ consumption ability; thirdly, duality of income gap will hinder the peasant workers’ consumption. In order to increase the consumption ability, we must have a rational allocation of economic and social resources. On one hand, we need to increase rural migrant workers’ income through various channels. On the other hand, improve the medical care, pension, education and other social security system, especially raise the pension pay. Finally, develop modern agriculture and improve the level of productivity in the countryside.The peasant workera’ urban wage and rural income and the duality of income gap not only affect affect their consumption ability and consumption behavior, but also play a special role and profound enlightenment on New-style Urbanization and New Village Construction in our country. According to from their incomes, we can divide the peasant workers into two kinds:one is mainly on urban wages and the other is mainly on rural incomes. Having a different treatment to these two kinds can promote reasonable urbanization. Therefore, as for the group that city wages are greater than the rural incomes, we should encourage them to withdraw from the countryside gradually and get used to living in the city to improve the urban consumption ability; As for the group that city wages are less than the rural incomes, their incomes mainly come from the countryside. Encouraging them to abandon the land blindly is not a feasible way. On the contrary, we would better let them develop rural production and increase rural income. A higher income elasticity of spending can also lead to high consumption level. New-style Urbanization and New Village Construction can be paralleled.