Solution to the Dilemma of the Migrant Labor Shortage and the Rural Labor Surplus in China

Guifu Chen and Shigeyuki Hamori

China & World Economy, 2009, vol. 17, issue 4, 53-71

Abstract: Since 2003, China's labor market has been facing two coexisting crises: a rural labor surplus and a severe shortage of migrant labor. Using data from the 2000 China Health and Nutrition Survey questionnaire, which covers 288 villages in 36 counties, this paper attempts to find a solution to this dilemma. Specifically, a multinomial logit model, a Mincer‐type model and a probit model are applied to examine the effect of educational level on the employment choices for rural laborers, and on the wages and the employment status of migrants. Based on the results of our analysis, we propose the implementation of policy aimed at increasing the educational level of rural dwellers, in conjunction with other policies to eliminate all artificial barriers, to facilitate the migration of rural laborers.

Date: 2009
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