CSSN-Labor Market Segmentation, Constraint of Financial Market and Dynamitic Evolution of Migration Structure

. > JOURNALS > The Journal of Quantitative & Technical Economics > 2014 > 201401

Labor Market Segmentation, Constraint of Financial Market and Dynamitic Evolution of Migration Structure

Author : Source : The Journal of Quantitative & Technical Economics No.1(2014) 2014-01-07

Abstract: Based on the overlapping generation (OLG) model, this paper explores the long-term dynamic evolution process of rural-urban migration with the background of Chinese labor market segmentation. We show that Chinese labor market segmentation, migration cost and rural financial restraint together shape the basic characteristics of rural-urban migration. The choice of rural people among migration types is not only related to the urban-rural income gaps, but also to their education levels. Finally, we conclude that breaking labor market segmentation, deepening the reform of China's household registration system and improving the rural financial environment are very helpful in optimizating the migration structure and wage structure, raising the education level, reducing the urban-rural income gap and China’s income inequality, and accelerating the transformation of dual economy structure.

Key words: Labor Market Segmentation, Dynamitic Evolution Process of Migrantion Structure, Migration Cost, Education Investment

Editor: Yu Hui