Dynamic CGE Model and Simulation Analysis on the Impact of Citizenization of Rural Migrant Workers on the Labor and Capital Markets in China

Table 1

Simulation scene design.

Type of scene	The simulation scene
Baseline	(1) The total population and the growth of the total workforce are exogenous; (2) the tax rate remains unchanged on the basis of differences in wage levels and the agricultural labor force can continue to transfer to nonagricultural sectors; and (3) technology and capital depreciation rates are exogenous variables.
Citizenization of rural migrant workers	(1) Relative to the base period, 300 million migrant workers are citizenized annually from 2011 to 2015; (2) according to the CHINAGEM base period database and ACFTU’s data, the paper breaks down the policy-shock value of the rural labor force to an average annual decrease of 0.65% and the urban unskilled labor supply to an average annual increase 1.2%; and (3) other exogenous variables are set to the same levels as in the baseline scenario.