The labor shortage phenomenon troubling China’s economic development in recent years reveals the incomplete understanding of labor supply scale and structure, which rejects the theory of unlimited supply of labor force and also reveals the situation of urban and rural labor market segmentation, difficulties of free migration and ineffective allocation of labors. The urban and rural labor market segmentation makes the labor fail to stable institutional expectation and lack skills wills of strengthening skills and human capital accumulation, and makes them migrate and employ in migratory pattern. In the meanwhile, enterprises faced with the employees with high degree of mobility fail to input resources to upgrade industry structure. The two factors cause the overdevelopment and overcompetition of laborvintensive enterprises which rely on lowcost, lowskilled labor force, which further leads to conflicts of intensive labor demand and limited room for improvement of labor wages. This paper analyzes the impact factors of urban and rural labor migration pattern using data on the permanent migration wills of rural migrant workers in Hangzhou to explore the affecting degree of these factors as the labor migration cost on the urban and rural labor market segmentation. The policy meaning is to provide reference for the institution arrangements that foster integration of urban and rural labor market and permanent migration of rural labor.