An Empirical Analysis of Rural Labor Transfer and Household Income Growth in China

Abstract

For developing countries, rural labor transfer from agriculture to non-agricultural sectors plays a key role in increasing rural household income, improving agricultural productivity, and solving problems of the lack of non-agricultural labor force. As a developing country, although China's total GDP ranks second in the world, its unbalanced development of the regional economy has not be radically solved in the long-term. Therefore, rural labor transfer is also the focus of the Chinese government.Combined with the process of China's rural labor transfer in the last 40 years of reform and opening up, this paper explores the impact of labor transfer on the income growth of rural households, in hope of finding a way for developing countries to learn from.