A Simulation Research of the Effect of the Reform of the Household Registration System on the Flow of Rural Labor Force: A Perspective of New Economic Geography

Liu Junhui, Zhang Gu

Journal of Finance and Economics Vol. 42, Issue 10, pp. 80 - 93 (2016)  DOI:10.16538/j.cnki.jfe.2016.10.005

Abstract

Based on the intermediate inputs model in new economic geography, this paper incorporates factors such as the household registration system, land property right system and the modes of the flow of labor force, and constructs the evolution model of the household registration system in China. Then it simulates the influences of the reform of the household registration system and land property right system on the flow of rural labor force by numerical calculation. It arrives at the conclusions as follows: firstly, different routes to the reform of the household registration system greatly affect the flow of rural labor force and economic development; if the restriction of the household registration system on the flow of labor force reduces, the economic system will release huge reform dividends, and if current household registration system remains, we will suffer great losses; secondly, different routes to the reform of the land property right system affect the results of the reform of the household registration system, and if the flow of rural labor force is accompanied by land, the dividends from the reform of the household registration system will enlarge. It shows that the reform of the household registration system and land property right system should be carried out together; not only the restriction of the household registration system on the flow of labor force should reduce, but also agricultural land contract rights and the right to the use of residence base should remain. It enriches & perfects current labor migration theory, and also provides a new idea for related decision-making of local governments.

Keywords

reform of the household registration system; the flow of rural labor force; new economic geography; citizenization of migrant workers