Does Vertical Fiscal Imbalance Affect the Transfer of Rural Surplus Labor?

PBES

Proceedings of Business and Economic Studies

2209-26412209-265X

Bio-Byword Scientific Publishing Pty. Ltd.

10.26689/pbes.v9i7.15701

Article

Does Vertical Fiscal Imbalance Affect the Transfer of Rural Surplus Labor?https://artdesignp.com/journal/PBES/9/7/10.26689/pbes.v9i7.15701ZhangYating

2026

2026-07-30

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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