Semi-Proletarianization in a Dual Economy: The Case of China

Abstract

This paper proposes a model to explain the wage increase for migrant workers in China since the mid-2000s. First, the model consists of a capitalist sector and a non-capitalist sector. Second, households are semi-proletarianized because they participate in both family farming and wage production. Third, capitalist firms determine the wage level in order to extract labor. The paper demonstrates that semi-proletarianization is one of the three stages of the long-term dynamics of a dual economy like China. In so doing, it provides an alternative to the Lewis turning point literature. JEL Classification: B51, O53, E24