CoPS/IMPACT Working Paper Number G-188

Title: The effects of facilitating the flow of rural workers to urban employment in China

Authors: Yinhua Mai, Xiujian Peng, Peter B. Dixon and Maureen T. Rimmer


The Second Agricultural Survey in China revealed that during 2006 about 130 million rural workers spent more than a month working outside the township of their residence. Most of these migrant workers engaged in industrial and services activities. They have played an increasingly important role in China's economic development. In this paper we introduce model mechanisms capturing demand and supply characteristics for these migrant workers under a MONASH-style dynamic Computable General Equilibrium framework. The model, SICGE (State Information Centre General Equilibrium), is applied in this study to analyse the effects of reducing institutional restrictions to the flow of rural labour to urban employment.

JEL classification: J21.

Keywords: China, CGE modelling, labour supply, rural-urban migration.

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