Maybe it is a good time to narrow the wealth gap in China

I watched a short video on Financial Times about the Chinese labour market. It suggests that the migrant miracle ends. More people decide to look for jobs in their hometowns and the ageing population creates labour shortage and rise in labour cost. If the data is correct in the video, then there will be more opportunities in small cities and towns. When people decide to stay in their hometown, the population will increase faster than it in large cities, such as Beijing and Shanghai. The problems in large cities are high living cost, well formed social and business structures. The high living cost could make high income in large cities less attractive. Well formed social and business structures form barriers for new enters. This does not mean people will be differentiated in the labour market; however, it means the difficulty to break into higher ranks in the society rises. Moreover, large cities have all necessary services and infrastructures. This is what smaller cities and towns might not have, which means people can start their business in these areas. In addition, the cost of starting a business in small cities is much lower than it in a large city. Therefore, we could see in the future, more resources will be moved from large cities to small cities and small cities will experience faster economic growth and create more job positions compared with large cities.

The FT video link: https://next.ft.com/content/0a86583e-e5f2-11e5-bc31-138df2ae9ee6