Research On Industrial Structure Upgrading, Labor Mobility And Urban-rural Income Gap

Economic transition and the market reform has changed the original system and incentive mechanism,making resource allocation more reasonable,creating the“China miracle”of the world economic growth.With the amount of economy boom,the income gap of our country,especially the income gap between urban and rural residents is larger and larger.How to maintain economic growth and keep the income gap between urban and rural areas in a reasonable range is the issue of international scholars who are in positive thinking.This article focus on China's continued urban and rural labor market segmentation and accelerate the transformation and upgrading of industrial structure background,the research on industrial structure upgrade and work flow of the influence of income gap between urban and rural areas has both theoretical value and practical significance.First of all,on the basis of classical endogenous economic growth model,building the upgrade of industrial structure,labor mobility influence income gap between urban and rural areas of the mathematical model,through the reasonable hypothesis and strict mathematical deduction,it is concluded that the two important propositions:(1)the industrial structure upgrade will enlarge the income gap between urban and rural areas(2)labor mobility can narrow the income gap between urban and rural areas.Secondly,using the upgrading of industrial structure,labor mobility and multi-dimensional indicators of the income gap between urban and rural areas,based on the provincial panel data from 1994-2013,has carried on the empirical analysis.Empirical research found that :(1)Adopt the index and the actual income ratio between urban and rural areas as explanatory variables,after controlling for the economic development level,inflation,the government behavior,foreign direct investment,economic openness and financial development scale,financial development efficiency,degree of education development,and other variables,found that on the whole,the industrial structure upgrade worsen the income gap between urban and rural areas,labor mobility will help to improve the income gap between urban and rural areas.(2)Change the industrial structure upgrade and labor flow indicators for robustness test,the results support the previous conclusions,point out that the reliability of the estimation results are fairly.Based on regression method,found that the different on the upgrading of industrial structure have significantly expanded the income gap between urban and rural areas,and labor flow with theimprovement of,its effect on the improvement of the income gap between urban and rural areas gradually strengthened,support this conclusion,enriched the above conclusion,demonstrate the robustness of the benchmark model conclusion better.(3)Empirical research found that the industrial structure upgrade for labor mobility,and upgrading of industrial structure will by blocking labor mobility and indirect negative effect on the income gap between urban and rural areas,this part explains the upgrading of industrial structure to expand the cause of the income gap between urban and rural area.(4)The upgrade of industrial structure into high-level rationalization of industrial structure and industrial structure,further empirical studies found that high-grade enlarged the income gap between urban and rural areas,industrial structure and industrial structure rationalization to narrow the income gap between urban and rural areas.(5)Labor mobility effect on the income gap between urban and rural areas has a threshold effect,when the lower level of labor mobility,and does not improve the income gap between urban and rural areas,and only after labor flow reaches a certain degree,labor migration ability to improve the income gap between urban and rural areas,the threshold of the model,the upgrading of industrial structure also expanded the income gap between urban and rural areas.(6)The income distribution effects of industrial structure upgrade in China,there exist certain differences between various regions,the eastern region of the industrial structure upgrade,there is no significant impact on the income gap between urban and rural areas,and upgrading of industrial structure in the mid-west significant deterioration in the income gap between urban and rural areas,labor mobility no matter in the east or in the mid-west,help to improve the income gap between urban and rural areas.Based on the mathematical and empirical conclusions,this article is the important policy implications in China to speed up the transformation and upgrading of industrial process should pay attention to its adverse effects on the income distribution,break the household registration system,to speed up labor mobility is a better policy options.China should not only pay attention to the fundamentals of industrial structure,more attention should be paid to the rationalization of industrial structure,and the integrated use of other policies and measures,the upgrading of industrial structure in urban and rural income distribution to minimize the negative impact.