Poverty in China is regarded as poverty based on rural or urban area. The Chinese government remarkably made progress in reducing rural poverty. In order to decrease poverty in the urban region, the Labor and social security ministry have policies issued that can provide training, employment as well as relief for the poor in urban regions. Such policies however do not address the rural migrant workers who live and work in the cities. Scholars such as Huang Ping, (2004a) have argued that there exists a policy gap between poverty reduction in rural and urban regions (Lin, 2006). Even though there are certain positive results acknowledged till now and the expected results will continue, however there are various serious issues that remain which require addressing. They are present especially as a consequence of structural barriers not present policies. As evident from the above figure, there existed a rural migrant workers wage gap. The migrant labor’s average salary is lesser in comparison to the urban workers.
The average migrant workers monthly wage was USD 100 in 2002 which was average wage of urban workers by 58 percent. Hourly wage differences are much larger. As a matter of fact, for compensating for the real wage declination, worker who were rural migrants accepted even long hours at work. According to Henan, a survey conducted on the provinces of Hunan and Sichuan depicted that rates at hourly wage for the migrant labors is one by 4 that of the urban workers from local urban regions. Mostly the migrant works are not educated and most of them have never taken part in programs for training for being employed in non-agricultural jobs. The Chinese central government has provided certain focus over this problem like the Sunshine project which allowed workers to work and learn in the year 2004 but the demand of migrants for these programs cannot be met in an easy way when more than 150 million rural workers are more to join in future as estimated.