Keywords
Rural surplus labor transfer
Effectiveness of human capital investment
Economic growth rate
Published : 2026-07-30
Abstract
This paper explores the theoretical mechanisms through which vertical fiscal imbalance influences the transfer of rural surplus labor. Using provincial-level panel data from 1998 to 2017, it empirically examines the effects of vertical fiscal imbalance on this labor transfer process. The findings indicate that: (1) Currently, vertical fiscal imbalance has a significant direct hindering effect on the transfer of rural surplus labor. (2) Vertical fiscal imbalance hinders the transfer of the rural labor force by slowing down regional economic growth and limiting the effectiveness of regional human capital investment. The indirect effect of the former is weaker than the indirect effect of the latter.
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