The Impacts Of Rural Land Circulation The Labor Transfer

With the rapid development of the economy as well as the deepening of reforming, China’s urbanization and agricultural modernization are constantly advancing. Behind the remarkable results, some social problems have received extensive attention, including the unordered transfer of the surplus farm labors during the process of urbanization, and the fragmentation of operating status in the land. Promoting surplus farm labors to transfer to the urban area orderly and the moderate scale operating of the farm land is the key of accelerating the urbanization process and agricultural modernization. Therefore, it is of great significance to analyze the current situation of the transfer of surplus farm labors as well as the land use situation in China, and find the solutions to promote the orderly transfer of the labor force and to achieve the modest scale operation of the land.Concerning the agriculture, countryside and farmers, the study focuses on the impact of rural land circulation on the surplus labor transfer. As land is the last surviving protection of farmers, when the farmers transferred to non-agricultural sectors, they didn’t give up their land. However, urbanization and agricultural modernization require some farmers to abandon their land, so as to realize permanent transfer. When the contradiction exists in the needs of economic development and present situation, land circulation is the way to resolve the conflict. Thus, it is quite urgent to study the impact of rural land circulation on the surplus labor transfer.The framework of this paper is to study the current situation of China’s land circulation and the situation of labor transfer, analyze the impact of rural land circulation on labor transfer, and propose the constructive suggestions based on the former studies.. Combining the theoretical analysis and empirical analysis during the research, the paper tries to analyze the impacts of rural land circulation on the labor transfer respectively from micro angle and macro angle. Theoretical analysis starts from both sides of land-use right transfer, analyzes the impacts of the patterns, the time and the scales of land circulation on the labor transfer. From macro perspective, the empirical analysis established a linear regression model which confirmed the impacts of rural land circulation on the labor transfer. From the microscopic point of view, at the beginning, due to the presence of rental income as well as the social security function of the land, land circulation can effectively promote the rural surplus labor transfer. However, the short-term, fragmented land circulation has its limitations, such as the labor who has transferred will soon be faced with the question whether or not continue to carry out the land circulation and continue with individual labor transfer, the dispersed distribution of human capital investment, labor shortage in agriculture in some family, the incomplete rural surplus labor transfer, and the undetermined long-term investment will of the transferred persons. On the contrary, conducting centralized model to participate in such longer period land circulation will be beneficial to complete the transfer of rural surplus labor, achieve appropriate scale operations of land, and further release of surplus rural labor force. The empirical analysis indicates that a positive correlation exists between the area of land circulation and the amount of labor transfer, that is, the larger the area of land circulation, and the more the labor force participation in non-farm employment in rural areas. Finally, the paper attempts to explore an effective way to promote land transfer and weaken the social security function of the land, as well as suggestions to promote the appropriate scale operation of the land, thus achieving the efficient and orderly transfer of farm labors.