Study On The Impact Of Local Transfer Of Rural Surplus Labor Force On The Income Gap Between Urban And Rural Areas

Rural surplus labor transfer plays an important role in narrowing urban-rural income gap.However,in recent years,with the increasing scale of rural surplus labor transfer in China,urban-rural income gap is still high.In 2018,the per capita income level of urban and rural residents differs by 24,634 yuan,7.27%over the previous year.Why is rural surplus labor transfer in China not effectively narrowing urban-rural income gap?These are the questions that this article needs to explore and answer.Based on Todaro's population mobility theory,this paper analyzes the internal mechanism between rural surplus labor force local transfer and urban-rural income gap.Based on theoretical analysis,China's 2005-2017 panel data for 30 provinces is used.The panel data establishes the simultaneous equations model and the fixed effect model respectively,empirically testing the two-way causal relationship between the rural surplus labor transfer and the urban-rural income gap,and the impact of rural surplus labor force local transfer on urban-rural income gap in the economically underdeveloped areas.The main findings are as follows:(1)The negative interaction between the rural surplus labor force local transfer and urban-rural income gap is significant.The narrowing of urban-rural income gap,to a certain extent,guide and promote the local labor transfer from cities to rural areas and small towns,while the increase of the rural surplus labor force local transfer will further narrow urban-rural income gap.(2)In this paper,the panel data is divided into "developed" regions and"underdeveloped" regions.According to the per capita GDP below the national average level,it is merged into the "underdeveloped" group.Based on the provincial panel data of underdeveloped regions,the study finds that the rural surplus labor force local transfer can significantly narrow urban-rural income gap.The Hausman test results show that the endogenous nature of rural surplus labor force local transfer is significant,which supports this paper's model design considering endogenous problems.(3)There is no Kuznets inverted U-shaped law in China.With the economic growth,there is a positive "U" pattern between economic growth and urban-rural income gap.In addition,the improvement of urbanization level will significantly narrow urban-rural income gap.Based on the above conclusions,this paper proposes the following policy recommendations:First,local transfer employment plays an important role in narrowing urban-rural income gap.It is necessary to pay attention to industrial development,combine local industrial characteristics,explore its historical and cultural advantages,and select industries with distinctive characteristics;Second,the adjustment of industrial structure absorb surplus labor,especially absorb and retain "talent",and other policies retain high-quality talents in urban-rural areas,to improve the education level of the overall employment.