Agricultural Technological Progress, Rural Labor Transfer and the Effect on Regional Wage and Income Gap—Based on SFA-CGE Two-Stage Model

The paper first analyzed the impact of rural labor transfer on regional real wage and income, and then used the frame to get the progress rate of sector level by stochastic frontier model(SFA)based on fixed observation points of rice, wheat, fruit and vegetable producing from 2003 to 2009 and used the shock to stimulate by the computable general equilibrium(CGE)model. Results show that the substitution of mechanical technology of labor showed significantly in wheat production; in the short term, agricultural technology progress enlarged the income gap while helping to close the disparity of real wage between regions; however, in the long run, its effect of converging the real wage disparity should be guaranteed by both improving labor market mobility and rural labor skill ability as well as encouraging industry development in less developed regions by optimizing the industrial structure.