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Labour Market Reform, Rural Migration and Income Inequality in China - A Dynamic General Equilibrium Analysis

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  • Yinhua Mai
  • Xiujian Peng

Abstract

Using a dynamic CGE model this paper explores the effects of reform of the household registration (hukou) system in China on economic growth and rural - urban income equality over the period 2010 to 2020. It addresses the specific questions whether reform of the household registration system together with the removal of other institutional barriers to rural labour mobility can accelerate rural labour mobility, and whether the enhanced labour mobility can improve the efficiency of the allocation of labour with the result of increasing labour productivity and reducing rural-urban income inequality.

Suggested Citation

  • Yinhua Mai & Xiujian Peng, 2011. "Labour Market Reform, Rural Migration and Income Inequality in China - A Dynamic General Equilibrium Analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-221, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-221
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    References listed on IDEAS

    as
    1. Hertel, Thomas & Zhai, Fan, 2006. "Labor market distortions, rural-urban inequality and the opening of China's economy," Economic Modelling, Elsevier, vol. 23(1), pages 76-109, January.
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    Cited by:

    1. Yinhua Mai & Xiujian Peng & Peter Dixon & Maureen Rimmer, 2014. "The economic effects of facilitating the flow of rural workers to urban employment in China," Papers in Regional Science, Wiley Blackwell, vol. 93(3), pages 619-642, August.

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    More about this item

    Keywords

    rural-urban migration; income inequality; labour market; China; CGE modelling;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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