Birds talk about money.

2022-05-2118:10 Shanxi

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Industry is the foundation of economic development, and the adjustment and improvement of industrial structure is conducive to promoting the transformation of economic development mode and economic growth, and is an important indicator to measure the quality of economic development.

With the change of a country's industrial structure, it will inevitably bring about changes in the scale and proportion of investment in related factors, which will eventually change the relevant interests of different factor holders, especially with the adjustment of investment direction and scale, which will change the status of various industries in the national economy, thus having a direct and indirect impact on residents' income.

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The direct influence of industrial structure change on the income gap between urban and rural areas

With the emphasis on ecological issues and the strengthening of scientific research, the service industry, especially the tertiary industry represented by producer services, will receive more attention, the investment scale will be expanded, the added value will be increased, and it will become a pillar industry of the economy, which will ultimately affect the income distribution of residents.

When the service-oriented tertiary industry becomes the pillar industry of the economy, its important feature is that the utilization rate of resources is obviously improved, which is mainly due to the transformation of technological innovation into the improvement of production capacity, creating new growth points for the whole industry and providing sustained impetus for economic development.

When more resources are invested in the tertiary industry, on the one hand, the cost of administrative punishment can be reduced because of the reduction of bad output, on the other hand, the production efficiency can be improved because of the use of new technologies, so that enterprises engaged in the production of this industry can obtain excess surplus value.

Because every investor in the market economy is a "rational person" who pursues profits, it will attract more capital, and eventually the productivity of the whole society will be generally improved.

The improvement of labor productivity means that the marginal cost of production decreases and the marginal products increase, that is, the marginal productivity of labor increases.

The wages of workers are ultimately determined by their marginal production capacity, so with the improvement of marginal production capacity, the wages of workers will also increase.

Due to the increase of the wage rate of the tertiary industry, the balance between industries has been broken, leading to the migration of labor force between industries. For the tertiary industry, workers need to have higher labor skills to be competent, which undoubtedly becomes a huge obstacle for the vast rural population to enter the tertiary industry.

At the same time, the tertiary industry is often concentrated in urban areas with relatively perfect infrastructure, while the primary industry is still dominant in rural areas, and the tertiary industry is backward in development and absorbs less rural labor.

On the contrary, being an urban resident has unique advantages.

The overall education level of cities is generally higher than that of rural areas, and they have the necessary labor skills, and there are no barriers to industrial entry.

At the same time, geographically, the tertiary industry exists more in urban areas. For urban residents, it can have more employment opportunities and obtain more information resources, so it is in a favorable position in the competition.

With the development of scientific and technological innovation, industrial refinement and specialization, the tertiary industry is further developed, the marginal productivity is improved, and the wages of workers are improved, which makes the income advantage of urban residents tend to strengthen and eventually leads to the widening of the income gap between urban and rural areas.

On the other hand, according to Petty-Clark theorem, when the per capita income level increases, the labor force of the primary industry will first transfer to the secondary industry and finally to the tertiary industry. At the same time, according to Lewis, China has the characteristics of dual economy, and there is an income gap between urban and rural areas. When the yields of different departments are different, the labor force will shift from low-income industrial departments to high-income modern departments, which will eventually increase the income of rural population and help narrow the income gap between urban and rural areas.

With the migration of labor between different departments, the labor structure will change, which will reduce the number of employees in the original traditional production departments, increase the per capita share of resource allocation, and raise the wage level, thus increasing the income of workers engaged in traditional industries.

With the industrial upgrading, technology fully flows between departments, which also improves the production level of traditional industrial departments, improves labor efficiency and increases the salary level of employees in traditional industrial departments. Finally narrow the income gap between urban and rural residents.

Therefore, the comprehensive influence of industrial structure on the income gap between urban and rural areas ultimately depends on the development degree of the tertiary industry in the process of industrial structure adjustment.

02

Indirect influence of industrial structure change on urban-rural income gap

Adjustment of employment structure

In the process of economic development, traditional industries will be gradually eliminated due to the characteristics of large pollution and backward production technology, and the decline of these industries will release a large number of labor.

At this time, emerging industries are in the early stage of development, which requires a large number of labor forces to combine with their own production factors. Therefore, these industries have absorbed a large number of labor released by traditional industries.

This has changed the existing employment structure to some extent.

1999, the proportion of employees in the primary, secondary and tertiary industries in China was 50. 1%, 23% and 26.9% respectively. With the change of industrial structure, more and more employees in the primary industry turn to the secondary and tertiary industries to find employment opportunities. By 20 17, the proportion of employees in primary, secondary and tertiary industries in China will be 50. 1%.

The adjustment of industrial structure has changed the traditional employment structure by promoting the redistribution of labor among the three industries.

The income gap between different industries is huge. Judging from the current situation, among the three industries in China, the tertiary industry has the highest wage level, followed by the secondary industry and the primary industry has the lowest wage level. With the adjustment of industrial structure, the labor force will inevitably flow from industries with low wage rates to industries with high wage rates, thus changing the employment structure.

Specifically, in the early stage of China's economic development, labor-intensive industries were the main body of China's industrial structure, and the requirements of various industries for labor were not high. The development of labor-intensive industries has attracted a large number of urban and rural laborers. At this time, the employment structure is mainly labor-intensive heavy industry, and the income gap between urban and rural residents is not very large.

Since the implementation of China's reform and opening up strategy, with the deepening of reform and opening up, the tertiary industry has developed rapidly in China, creating a large number of employment opportunities, making workers have more employment choices, but problems have also emerged.

Since the tertiary industry started in urban areas, the employment opportunities created were first known to urban residents. At the same time, the tertiary industry demands higher and higher human capital. Compared with rural residents, urban residents can better meet the employment requirements of the tertiary industry.

Therefore, most of the employment opportunities created by the tertiary industry are occupied by urban residents, and the wage level of the tertiary industry is higher than that of the primary and secondary industries, thus widening the income gap between urban and rural areas.

urbanization level

With the continuous transfer of rural surplus labor to cities and towns, the level of urbanization in China has been continuously improved.

1999, the proportion of urban population in China was 34.78%. In 20 10, the proportion of urban population in the total population exceeded 50% for the first time. By 20 18, the proportion of urban population in the total population will increase to 59.58%.

For the income gap between urban and rural residents in China, the continuous improvement of urbanization level has two sides.

On the one hand, the level of urbanization will widen the income gap between urban and rural residents.

In the early stage of China's economic development, national policies mainly supported urban areas, and the development of secondary and tertiary industries was mainly carried out in urban areas. Compared with the primary industry, the wages of the secondary and tertiary industries are higher, which attracts a large number of rural surplus labor to transfer to the secondary and tertiary industries to obtain higher income. Because the secondary and tertiary industries are mainly concentrated in urban areas, it also makes a large number of rural population flood into cities, accelerating the process of urban-rural integration.

These rural residents who work in cities have raised their income levels by engaging in higher wages. At the same time, the influx of rural residents into cities has greatly increased the urban labor force, resulting in a decline in the level of balanced wages and the income level of urban residents, thus narrowing the income gap between urban and rural residents in the process of lifting.

Secondly, with the continuous improvement of urbanization level, the radiation-driven role of cities in rural areas will continue to strengthen. With the over-concentration of urban industries and the shrinking of urban space, land rent will become more expensive.

Therefore, some industries with poor financial resources will be forced to move to rural areas, which can further provide employment opportunities for rural surplus labor, enable more labor to obtain higher income, and further narrow the income gap between urban and rural residents.

But on the other hand, we should also see that there is no smooth circulation channel for the labor force in China at present, and the backward household registration system and human capital level seriously restrict the free transfer of labor force.

Compared with rural residents, urban population can get more employment opportunities because of its unique geographical advantages.

Moreover, with the development of secondary and tertiary industries, the demand for human capital is getting higher and higher, residents in urban areas can get better educational resources, and parents' educational concepts are more advanced, which makes their children more likely to become talents.

On the other hand, in rural areas, due to the backwardness of educational facilities and the lack of educational ideas of some parents, children in rural areas can not get a good education, and their knowledge reserves and skills are relatively poor, which makes it difficult to meet the requirements of industries in urban areas for human capital.

Therefore, more high-wage employment opportunities are still occupied by urban residents, and rural residents can only engage in low-wage jobs with low skill requirements, and they also need to bear the high living expenses in urban areas.

All these reflect the innate advantages of urban residents and will widen the income gap between urban and rural residents.

Finally, with the increasing urban population, the government needs to spend more financial resources, manpower and material resources to build urban infrastructure to meet the increasing population, which will inevitably reduce the government's emphasis on rural areas and financial support, which is not conducive to urban development.

To sum up, the development of urbanization level can not only narrow the income gap between urban and rural areas, but also expand it. The specific influence depends on the strong and weak relationship between the two influence paths.

03

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In the process of industrial structure change, the income level of urban residents will be raised first, thus widening the income gap between urban and rural residents.

However, with the further development of economy, the radiation effect of cities on rural areas is constantly strengthened, which will narrow the income gap between urban and rural residents.

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