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Discrete Dynamics in Nature and Society
Volume 2014, Article ID 351947, 8 pages
Research Article

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

Qi Wu1,2 and Hao Xiao1,2,3

1School of Economics and Trade, Hunan University, Changsha, Hunan 410079, China
2China-Australian Economic Policy Research Center, Hunan University, Changsha, Hunan 410079, China
3Academy of Mathematics and Systems Science, Chinese Academy of Sciences, Beijing 100190, China

Received 18 April 2014; Revised 8 July 2014; Accepted 10 July 2014; Published 11 August 2014

Academic Editor: Chuangxia Huang

Copyright © 2014 Qi Wu and Hao Xiao. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


This paper investigates the effect of the policy of citizenization of rural migrant workers on the factor market in a dynamic CGE model, which contains multiple dimensions of labor heterogeneity, a labor-lagged adjustment mechanism, and a dynamic investment mechanism. The simulation results show that changes in supply in the labor market will affect the labor market structure, the relative factor price, and the investment in and the output of industries.