Abstract
In this chapter, we conduct the simple comparative static analysis of the environmental and economic effects of the government and producer services sector’s training of rural-urban migrants. We mainly focus our attention on environmental issues and reach the following conclusions: When the government lowers the interest rate of training loans, environmental conditions will worsen. However, when the producer services sector increases the unit cost of training rural labor, the opposite effect occurs, and environmental conditions will improve. In addition, we discuss the conditions under which a government reduction in the interest rate of training loans will lead to the reduction of pollution damage to agricultural production and a decrease in social utility.
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Notes
- 1.
In the present paper, human capital investment refers purely to the vocational training. Generally speaking, the human capital level is roughly measured by the educational year, and here we treat the vocational training as a way to compensate for the lack of educational year.
- 2.
Detailed information can be referred to http://zhcfg.esepworld.com/zhcgch/182795/index.html
- 3.
In the present paper, we assume that the wage rate of the manufacturing sector is downward rigid because people who are employed in the urban sectors usually receive contractually obligated wage rates or are protected by minimum wage acts or the labor union in urban areas. The same assumption of the downward rigid manufacturing wage rate (especially in the frame of Harris-Todaro model) can be also found in Grinols (1991), Gupta (1993), Tawada and Sunqin (2010), Xiaochun Li and Xiaoying Qian (2011), etc.
- 4.
The change of c has ambiguous impacts on the loss of agricultural production due to the environmental pollution and the social utility level.
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Appendix
Appendix
The determination of p 1, L 1, L 3, w a , and L U :
The derivations of the equilibrium can be shown as follows: given that the values of the exogenous variables are i and c, we can derive p 1, L 1, L 3, w a , and L U . When given \( \overline{w} \) and exogenous variables i and c, we can derive L 2 by solving Eq. (3.5). By solving Eqs. (3.3) and (3.8), we also know p 1 and L 1. Substituting p 1 into Eq. (3.7), we know factor T. Substituting L 2 and T into Eq. (3.4), Y 2 is derived. Given Y 2, from Eq. (3.10), we can know factor E. Substituting E into Eq. (3.11) and L 1, L 2 into Eq. (3.13), only wa and L 3 are unknown variables. By solving the system of equations, we can derive w a and L 3. Finally, L U can be derived by substituting w a and L 3 into Eq. (3.12).
The conclusion drawn from this chapter is meaningful for the Asian developing countries. Environment of developing countries is generally worrying, especially in Asia. And training aiming at those farmers who transferred from rural area to urban area is an important option to optimize developing Asia economy. According to the conclusion of this chapter, choosing suitable ways of human capital training on the basis of the very economic environment can save developing costs which means killing two birds with one stone.
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Li, X., Zhou, Y. (2017). Economic and Environmental Effects of Rural-Urban Migrant Training. In: Li, X. (eds) Labor Transfer in Emerging Economies. New Frontiers in Regional Science: Asian Perspectives, vol 12. Springer, Singapore. https://doi.org/10.1007/978-981-10-3569-2_3
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