The Research On The Impact On Labour Employment Due To Industrial Upgrading In China

Since the reform and opening up, China’s total economy quickly jumped to the second position of the world, when China has been beginning to focus on the change of development mode from GDP. Industrial upgrading as transformation of the most important ways to promote economic development has risen to the height of the national strategy, which will affect all aspects of the national economy. At the same time, the national conditions of large-scale population forces our country facing severe employment situation. With the accelerating process of industrial upgrading, China’s labor force is bound to change dramatically. However, on the one hand, the connotation of industrial upgrading is controversial, academia, official media often identity industrial upgrading with industrial restructuring, transformation and upgrading of industrial structure etc., with the other hand, the research of impact of industrial upgrading on employment in model and empirical research is lack. This paper attempts to describe the path of different levels of industrial upgrading impacts on employment, starting from the definition of the connotation of industrial upgrading, to establish the models of the overall industrial upgrading and manufacturing industry upgrading impact on employment with an empirical analysis to arrive at normative policy recommendations to promote employment in the industrial upgrading.In this paper, the main content is divided into eight parts:First, Introduction. To introduce the content of the research background, meaning, purpose, key issues, ideas, methods, and structure and innovation points. Second, Definition and literature review of industry upgrading and labor employment theory and the latest research results. It is more important to redefine the industrial upgrading connotation, and drawn the paths of impact of the three levels of the industry upgrade on labor force employment. Third, The impact of industrial development on labor employment. With recalling the historical stage since the founding of China’s industrial development and the main features, combined with the employment elasticity to stimulate the effect of the national economic output on employment by China’s overall industrial, regional composition, this chapter established an empirical model of the impact of the first level of industrial upgrading on employment based on Cobb-Douglas production function. Fourth, The impact of the industrial structure shifting on labor employment. On the basic of the research on the trend of the change in the structure of employment, industrial structure and employment structure deviates degree from the comparative analysis of overall and regional, this chapter discussed the positive and negative effects of industrial structure shifting on employment, and established an advanced model of impact of industrial upgrading on employment with measurable variables of industrial structure shifting, which covered the first and second content of industrial upgrading. Fifth, The impact of industry value chain upgrading on labor employment. For the substance of the third layer of the connotation of industrial upgrading, this chapter analyzed the characteristics and measure research and the current situation and dilemmas of China’s industrial upgrading from the perspective of the global value chain, as well as the differential configuration and changes in the quality of the labor force, and eventually we established one more advanced model of industrial upgrading on employment with measurable variables of industrial value chain upgrading which covered the complete three levels contents of industrial upgrading. Sixth, the empirical study of impact of manufacturing industry upgrading on employment. Combining with the relevant measure of the overall development and structural changes and value chain upgrading of the manufacturing industry, this chapter established an empirical model of the impact of manufacturing industry on employment. Seventh, The policy recommendations. On the basic of the research conclusion, this chapter put forward a proposal from both of the industry the labor market to ensure that the promotion of employment growth in the industrial upgrading. Eighth, The conclusion. This chapter drew a conclusion of the study, and induced the innovation points and insufficient and further research summarizes and comments.The empirical study of the overall industrial upgrading was based on1978-2011annual time-series data, as the manufacturing industry upgrading study was based on the panel of30manufacturing industries in2000-2011. Combination with the "overall local" perspective by using the "macro-meso-micro" perspective path, this article established three layers models, and the main conclusions of the impact on employment of industrial upgrading have three aspects:Firstly, for the overall effect of the model, industrial output growth to generate positive promotion effect on employment, but promoting effect gradually reduced. Industrial structure shifting has a negative impact on total employment, which three industrial structure changes direction of the effect is more significant, as the effect of the structural changes in the speed is not obvious. Industry value chain upgrading to measure with the technical efficiency can bring on employment creation effect, although the labor differential will reduce the original employment needs of the industry value chain jumped, enhance technical efficiency to stimulate the emergence of new industries and jobs to make up for reduced labor substitution.Secondly, for the comparative effect of the three models, the impact of industrial output growth on employment is reducing and may even be a negative, from the perspective of industrial structural changes, industrial structural shifting can contribute to the increase of employment, but it will becomes negative in the additional output growth and value chain variables, indicating that jumped along with the development of the national economy and the industry value chain to high-end segments, the impact of the structural changes in the three industries on employment eventually becomes negative. There is a significant role of promoting technical efficiency to increase employment.Thirdly, for manufacturing empirical study, the overall level of output growth in the manufacturing sector, the industrial structure inclined to the "middle per capita capital stock sector, the technical efficiency of the industry value chain can significantly increase the total manufacturing employment when capitalization in the manufacturing sector may cause employment losses. Among that, the "moderate per capita capital stock manufacturing sector has a higher proportion of output value growth rate and employment elasticity the industry promotion, and should be the priority select industries for upgrading.On the basis of the above conclusions, the paper presented at the industry level, China should continue to use the advantage of labor-intensive industries, based on a good priority target of industrial upgrading, we should combine the regional industrial upgrading and industrial transfer together, and accelerate our upgrading for the pace of the industry value chain, to focus on policies to support small and medium-sized enterprises and emerging industries, to minimize industrial upgrading negative impact on employment. For the labor market, it is necessary to reduce the cost of labor mobility, shrink labor income gap, and increase the quality of the labor force, and constantly improve the security system of labor employment, to ensure the labor market will achieve steady growth in the industrial upgrading process.