The Effect Of Rural Labor Mobility On Income GAP Between Urban And Rural

With the economic development rapidly, it benefits the lives of urban and rural residents in varying degrees, but it also brings a phenomenon of unfair income distribution and a widening wealth gap which is widespread concerned. In1978, the ratio of urban and rural residents per capita income was2.57, but the ratio rose to3.32in2013, and the absolute gap rose from209Yuan to18095Yuan. Since the reform and opening up, a large number of rural labor come to cities and towns with the liberation of labor, in2013, the total number of migrant workers has reached26894. Large-scale labor migration is an inevitable process of economic and social development. According to economic theory, the transfer from the agricultural sector labor to non-agricultural sector which will increase the marginal productivity of labor and the overall level of remuneration in the agricultural sector, and thus bring the income gap between different regions of convergence and reduce economics’growth. But the fact is that the income gap between urban and rural residents is not reduced with the expansion of the scale of labor mobility, which promotes us to have a deep reflection. We should try to re-investigate the affect of income gap between urban and rural residents which is caused by the flow of rural labor.In this paper, according to the Lewis model, the library times Kuznets’ inverted U curve "hypothesis, Jorgenson theory, Todaro and the new economic theory, I have made a series of dynamic analysis which about how the migration of rural labor affecting income gap between urban and rural residents. First, make outlines and the statistical description about the history and current situation of labor mobility and rural income gap between urban and rural residents; then, analysis the three ways which cause labor mobility influencing the income gap between urban and rural residents, and establish a multiple regression model, thereby, make a further analysis of the impaction which the rural labor have made on the income gap between urban and rural residents. At last, conclude new policy recommendations to narrow the income gap between urban and rural.In order to promote flow of rural labor rational and effective, the country must increase investment in human capital, and raise the overall education level in rural areas. Also, it must improve the overall skill level of migrant workers; increase farmers’ wages and welfare to avoid the situations of labor supply and demand business units and job asymmetric in the recruitment; promote the development of more comprehensive labor market and accelerate the process of reform of household registration system to expedite the settlement of binary segmentation economic context of the problem of unfair income distribution of urban and rural.