Labor Migration in a Dual Economy——Theoretical and Empirical Analysis Based on China's Economic Growth
Rural labor migration to modern sector in urban areas is considered to be a crucial mechanism to sustain China's economic development.Based on Harris-Todaro model,the paper analyzes the influences on labor migration caused by wage differences,production scale differences and total factor productivity differences in a dual economy.Besides,the paper calibrates the model with China's macroeconomic statistics in recent ten years and finds out that compared with unban sector in China,productivity in rural sector lags far behind.The only sustainable way to further liberate rural surplus labor and to accelerate the China's industrialization and urbanization is to raise labor productivity in rural sector.