New household registration system can boost economy  

人口问题专家：户籍改革可解经济两难

一面是亟待提升的农民工工资，一面是因成本上升而不堪重负的企业，如何化解这一中国经济当下面临的“两难”问题？全国人大代表、中国社科院人口与劳动经济研究所所长蔡昉给出了推进户籍制度改革的建议。

Beijing (CNS) -- An improved household registration system for rural people in urban areas can boost economic development in China, according to Cai Fang, head of the Institute of Population and Labor Economics at the China Academy of Social Sciences.

The employment of migrant workers in urban areas is not stable, because in some regions, migrant workers cannot enjoy equal public services as their urban counterparts.

To motivate and retain their migrant employees, some businesses are raising wages, but this method can add pressure to these businesses.

Cai suggested Wednesday that a better way would be to reform the current household registration system to cover more migrant workers.

Under such an improved system, migrant workers can get benefits from basic public services, said Cai.

Cai also said a reform of the household registration system can promote economic development in three ways:

First, reform can lead to changes in the wage structure of businesses, which can further promote the restructuring and upgrading of the industrial structure.

Second, the cost pressure on businesses can be reduced.

Third, reform can help stabilize the employment of migrant workers, and society's labor force participation can be improved.