The Influence Of Urbanization On Labor Cost In China And Policy Study

Urbanization is an important character of modern social and economic development.Since21stcentury, China has witnessed a quick economic growth, social development and agradual increasing national power, while the process of urbanization also stepped into a fastproceeding phase. Urbanization has attracted a great amount of rural residents moving tocities for jobs and better lives, which provided lots of cheap labors for urban labor market.Cheap labors have offered great population bonus for the fast economic growth of China, andthe competing superiority in international business as well. However, in recent years, asworkers’ income of wage and welfare increased, labor cost has experienced a continuing rise.This rising will have a great influence on our national economy, especially on exportindustries, so we need to pay more attention and concern on this issue.This paper is based on the background of the quick urbanizing process after the Reformand Open policy, using multiple research methods including document review, statisticalstudy, Delphi technique, and other analyzing methods, it gives a brief review of the variationof labor cost and models the relationship between urbanization and labor cost in Chinaaccording to the data from1989to2009, and in the end it analyzes the influence ofurbanization on labor cost in China. While utilizing Delphi technique, three rounds ofquestionnaire are designed to collect experts’ opinion on the influence of urbanization onlabor cost of China among more than20experts in Economic, Management, CityDevelopment, Demography and other different fields, and Kendall’s coefficient is used tocheck the coherence and validity of the research. The analysis of the relationship ofurbanization and labor cost will be an important complement and extend of urbanizationtheories, and be useful for the government making rational urbanization plans, avoiding thenegative impact of labor cost increasing resulted from blind movement of labors; analyzingthe rising trend of labor cost could provide prediction for the human resource sector ofenterprises, and reference on development strategy and how to make a rational allocationbetween human capital and material capital; the correct design of urbanization strategy and the rationally meet labors’ needs of income and welfare is helpful to promote a harmoniousinteraction among urbanization development, labor cost increase, economic growth and socialstability.