A Study Of The Minimum Wage And Agricultural Subsidies Factors’ Impact On Farmers’ Going Out Decision-making

Migrant workers had made a huge contrib ution for china s developme nt, butthe shortage of migrant workers beginning in2004has caused a great impact, and ithas a trend of spreading. This paper studies labor mobility fro m a uniqueperspective, also tries to find out what factors affect the labor mobility in nowadays.Therefore, studying the impact of the minimum wa ge syste m and a gricultura lsubsidy policies on labor mobility has theoretical and practical significance.This paper theoretically stud ies the relations hip among minimum wage andagricultural subsidies and labor mobility.First of all, this paper introduces the history and current s ituatio n as well as itscharacteristics through the data of Chinese in recent years. This can give us somerea listic judgments on china s labor mobility, especia lly the migrant workers;then o utlines the definition o f the minimum wage s ystem a nd its changing process,and gives the trends of the minimum wage; At last, we present the meaning ofagric ultural subs id ies in WTO s agreement on Agriculture, and describe thedevelopment history and actual state. of China s agricultural subsidies.Secondly, I put the variables of minimum wa ge and agric ultura l s ubsid ies intoTodaro model. I analyze the factors that affect the size of the labors’ mobilitywillingness, increme nt of minimum wage can attract migra nt workers going out tobe workers, and the agricultura l subs idy policy will increase the opportunity cost offarmers’ getting out to work, which is not good for labor flow; and also analyze thelabor mobility’s dynamic equilibrium model which contains the variables ofminimum wage and agricultura l subsid ies. The n I stud ies the influence when thesetwo variables change.Third ly，we re-divided the government’s strategy into two parts according towhether the subs id ies is d irect or not. If it is d irect subsid ies, we call it Green Bo xPolic y; otherwise, we call it Ye llow Bo x Policy. The n we cited in the s ubsid yeffic ie ncy of Yellow Box Policy. The rura l labor in China is divided into three k inds:farmer, migrant worker and semi-migrant worker. At last we ana lyze the static anddyna mic Game between government and the labor， when these polic ies areimp le mented at the same time, the ir influence to each other should be taken intoconsideration. Fina lly, according to results of the model above, we put forward correspond ingpolic y suggestions to accelerate the speed of labor mobility, to decide reasonableminimum and agricultural subsidies.