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Industrial Upgrade, Adverse Employment Shock and Land Centralization

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Author Info
Zheng, Jianghuai
Wang, Chengsi
Song, Shunfeng

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Abstract

Traditional Development Economics defines economic development in the view of transferring rural surplus labor force. It implies the industrialization is in a static state at a certain level while it is in a process of continuous industrial upgrade in reality. Under the circumstances, we analyze phenomenon followed by the upgrading of industrial structure such as return migration and mid-aged rural labors’ difficulty in job-hunting and demonstrated the influence of land centralization based on the practice of industrial upgrade and rural change in Suzhou. Finally it come to the conclusion that because of the extensive competition on simple-labor market, the industrial upgrade will make a adverse employment shock upon mid-aged rural labor which will lead to the more uncertainty of peasants to get jobs in the industrial section . If government takes an improper policy of land centralization, peasants will lose guarantee in the future and resist the land centralization. After the comparison between one-off compensation and land cooperation, a further demonstration show that the method of one-off compensation will depress peasants’ enthusiasm in land centralization while the form of land cooperation can guarantee and promote peasants’ welfare under the given institution of land ownership. As a result, land cooperation allows the smooth operation of land centralization and supports the industrial upgrade to some extent.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8921.

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Date of creation: Jan 2008
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Handle: RePEc:pra:mprapa:8921

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Related research
Keywords: Over-confidence,Regional Government Competition,Redundant Construction,Yangzte River Delta

Find related papers by JEL classification:
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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References listed on IDEAS
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  1. Fields, Gary S, 1982. "Place-to-Place Migration in Colombia," Economic Development and Cultural Change, University of Chicago Press, vol. 30(3), pages 539-58, April.
  2. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May. [Downloadable!] (restricted)
  3. House, William J. & Rempel, Henry, 1980. "The determinants of interregional migration in Kenya," World Development, Elsevier, vol. 8(1), pages 25-35, January. [Downloadable!] (restricted)
  4. Scott Rozelle & J. Edward Taylor & Alan deBrauw, 1999. "Migration, Remittances, and Agricultural Productivity in China," American Economic Review, American Economic Association, vol. 89(2), pages 287-291, May. [Downloadable!] (restricted)
  5. Zhao, Yaohui, 2002. "Causes and Consequences of Return Migration: Recent Evidence from China," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 376-394, June. [Downloadable!] (restricted)
  6. Meng, Xin & Zhang, Junsen, 2001. "The Two-Tier Labor Market in Urban China: Occupational Segregation and Wage Differentials between Urban Residents and Rural Migrants in Shanghai," Journal of Comparative Economics, Elsevier, vol. 29(3), pages 485-504, September. [Downloadable!] (restricted)
  7. Zhao, Yaohui, 1999. "Labor Migration and Earnings Differences: The Case of Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 47(4), pages 767-82, July.
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This page was last updated on 2008-10-6.


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