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The economic effects of facilitating the flow of rural workers to urban employment in C hina
Author(s) -
Mai Yinhua,
Peng Xiujian,
Dixon Peter,
Rimmer Maureen
Publication year - 2014
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12004
Subject(s) - agriculture , economics , labour economics , consumption (sociology) , wage , rural area , labor mobility , geography , medicine , social science , archaeology , pathology , sociology
Using a dynamic computable general equilibrium model of the C hinese economy we investigate the economic effects of relaxing C hina's household registration system over the period 2008 to 2020. The modelling results show that reducing the institutional restriction to rural labour movement will encourage rural workers to move from agricultural and rural non‐agricultural sectors into urban sectors. This enhanced labour movement will not only increase C hina's GDP and real consumption of households but it will also raise the real wages of agricultural and rural non‐agricultural workers. Although the real wage of rural migrant workers will increase at a slightly lower rate than in the baseline scenario, rural migrant workers remain considerably better paid than agricultural and rural non‐agricultural workers.