An Empirical Study On The Problem Of Low Proportion Of Farmers' Salary Income Of Yunnan Province

With the diversification of China’s rural economic development, the speed0f thefamily operating income growth declining, little change in transfer income andproperty income, the importance of wage income of farmers grew increasinglyapparent. Yunnan is a major agricultural province；the income of farmers is a globalissue of the province’s economic development and social stability. In recent years,farmers’ incomes of Yunnan Province is growth in general, but slow in growth speed,in particular, the wage share of income in the structure of the source of per capita netincome has been low, significantly below the national average, and even significantlylower in the western provinces, this phenomenon is rare and worth to explore.The reason for the low wage-income ratio in Yunnan Province is various,coming from both the impact of external employment environment and farmers’ ownreasons. From the contradiction between supply and demand of the rural labormarket，the supply side namely farmers，due to their own level of education isgenerally low、high labor mobility costs and the cost of living in the city makes themigrant farmers have fewer employment opportunities and lower levels in wages andsalaries；On the other hand, from the demands of the rural labor market, the low levelof economic development and industrialization, the urbanization process is too slow,and government investment in infrastructure and education is not high or notreasonable cause to a limited absorptive capacity to the rural labor force. No matterfrom what aspect of the reasons，the phenomenon that the low percentage of ruralhouseholds’ wages and salaries accounting for the total income is not a good thing.The first is not conducive to the realization of the goal of comprehensive well-offsociety in rural areas, in addition, far-reaching negative effects on agriculture, ruralareas and even the entire national economy sustained and stable development byconstraining consumption, production and distribution.Taking the phenomenon, that the percentage of rural household’s wages andsalaries accounting for the total income is low in Yunnan province, as a starting point,and based on the analysis of rural households’ rational behavior choice, this paperuses1983-2009data to conduct multiple linear regression analysis and principalcomponent analysis, in order to explore the reasons for this phenomenon in depth and propose some solution ideas. The results show that the main factors affecting wageincome is the average level of education, urbanization level and the industrialstructure. For increasing the wages and salaries income of rural households inYunnan province, it is pivotal to develop rural education and cultural undertakings inrural areas, in order to increase the average level of education；Secondly, it isnecessary to foster local economic development and accelerate the urbanizationprocess, for the purpose of promoting the transfer of surplus rural labor force；Thirdly,we should begin from the needs of establish a unified urban and rural labor market toget rid of the dual structure of urban and rural areas, to create a fair and reasonableemployment environment；Fourthly, we must vigorously develop the rural financialservices industry and improve service levels.