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Diane Publishing Books
Labor Market Distortions, Rural-Urban Inequality, and the Opening of the Peopleís Republic of China Economy
Thomas Hertel (au); Fan Zhai (au)
Evaluates the impact of some key factor market reforms on rural-urban inequality & income distribution, using a household-disaggregated, recursive dynamic computable general equilibrium model of the Peopleís Republic of China. It also explores how these factor market reforms interact with product market reforms currently under way as part of the countryís World Trade Org. (WTO) accession process. The simulation results show that reforms in the rural land rental market & hukou system, as well as increasing off-farm labor mobility, would reduce the urban-rural income ratio dramatically. Furthermore, the combination of WTO accession & factor market reforms improves both efficiency & equality significantly. Charts, tables & graphs.
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