Abstract
The current income gap situation between urban and rural areas is still one of the important problems on the road of China’s economic development; based on the panel data of 272 prefecture-level cities in China from 2003 to 2012 and the theory of labor mobility, this paper uses the quantile regression and OLS regression to study the relationship between labor mobility and urban-rural income gap. The empirical results show that: labor mobility can effectively narrow the income gap between urban and rural areas, and with the increase in the number of quantile points, this reduction effect increases. The impact of industrial structure and industrialization level has changed at different quantile points, but the investment in science and education, the scale of financial development, and the impact of social security have not changed.
Highlights
With the gradual promotion and implementation of the household contract responsibility system and the market economy system during the reform and opening, rural productivity has rapidly recovered and China’s economy has undergone rapid changes
Based on the above analysis, this paper uses OLS and quantile regression analysis methods to empirically examine the effects of labor mobility on urban-rural income gaps
Based on the urban-rural dual economic theory and income hypothesis, this paper empirically analyzes the impact of labor mobility on urban-rural income gap using panel data from 272 prefecture-level cities from 2003 to 2012
Summary
With the gradual promotion and implementation of the household contract responsibility system and the market economy system during the reform and opening, rural productivity has rapidly recovered and China’s economy has undergone rapid changes. As a typical dual economic structure country, China’s rural surplus labor force has been transferred from rural areas to cities, which is an inevitable process of economic development and social progress. This paper carefully understands and grasps the problems of urban-rural income gap in the process of China’s industrialization, industrial structure upgrading, and financial development during the period of market economy transition period. From the perspective of labor mobility, we will thoroughly analyze the role and impact of rural labor mobility on the income gap between urban and rural areas in China, explore the deep-seated mechanism of this pattern, and distinguish the market’s own defects from institutional factors in this profit distribution mechanism and reveal the formation of government policies so that put forward useful suggestions. 15 cities were severely deleted due to missing data, and this is the shortcoming of this article
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