Abstract:
China modern sector salary decision has got rid of the reservation wage restraint of traditional sector. Therefore, according to Lewis’ dual economy model, the Lewis turning point has come to China. The dual economy, however, still continue, with traditional sector and modern sector coexisting. After the Lewis turning point, the rural hollowing is its characterization, which is caused by the city’s excessive absorbing of the rural labors. To manage the rural hollowing, we should gradually eliminate the economic duality, strip the social function of farmland, turn agriculture into profit-oriented industry, create enough economic opportunity for the reproduction capital, transform traditional agriculture, introduce new agriculture technology and the new factor of production, breed rural economic organization, enrich both agricultural and rural economy, make agricultural labor force allocation detach the farming experience hard constraints, and finally break the unidirectional flow pattern of the labors from the countryside to the city.