How Large Is China’s Rural Surplus Labor Force?
发布: 2008-5-15 13:38 | 作者: CE | 来源: China Economist
MA Xiaohe1( 马晓河) and MA Jianlei2( 马建蕾)
1 Academy of Macroeconomic Research, National Development and Reform Commission
2 School of Agricultureal Economics and Rural Development, Renmin University of China
Editorial note:In the last 30 years, China has witnessed a massive transfer of its rural surplus labor to the industrial sector, making labor-intensive industries more competitive, giving China its nickname "factory of the world". However, are labor supplies infinite? Is China's advantage of low cost labor sustainable? The authors of this paper give forth some preliminary answers to these questions.
I. Background
In most developing countries, large numbers of excess labor exist in rural areas, resulting in the coexistence of the agricultural sector where productivity is low, and the urban industries where productivity is relatively high. Labor transfer from agriculture to mo dern industries is a common phenomenon in economic growth. In fact, transfer of rural surplus labor to non-agricultural sectors is a core element of industrialization and modernization.
Only in this way can modern industry develop rapidly and allow the overall national economy to become more efficient. Only through a massive outflow of agricultural labor can agriculture realize economies of scale and intensified operations (WU Jinglian, et al,1987).
