The Influence Of Technological Progress On Labor Employment In Chinese Information Industry

With the rapid development of economic globalization, all countries in the world have entered a rapid informatization development phase since the1990’s. Information industry has become the new growth point and strong engine for economic development in China, since the information technological progress around the world has had a profound impact on the development of chinese information industry. The technology level changes quickly with the rapid expansion of scale of chinese information industry. Due to characteristics of technology-intensive and knowledge-intensive, Information industry is taking in more and more labors with higher education level and higher knowledge level. Full employment is one of the goals in chinese macroeconomic regulation, however, the worldwide economic crisis has made employment situation worse in China How to balance the "Erosion effect""Substitution Effect" and "Compensation Effect","Creative Effect" of technological progress on the labor employment, and how to realize the parallel development of technological progress and full employment in chinese information industry, is worthy of our in-depth understanding. Discussing relationship between technological progress and labor employment in chinese information industry has an important practical significance for information industry policies, development of related theory system, development of chinese information industry and development of the prosperity of the whole society.So far, there is no unified conclusion on the relationship between technological progress and the labor employment in aspects both of theoretical analysis and empirical test after reviewing classical economics theories. Therefore we need to fix the relationship of technological progress and the labor employment in chinese information industry by adding various variables with a combination of specific economic environment and economic object.This paper analysis the influence of technological progress on labor employment in chinese information industry combined with characteristics of chinese information industry, basing on the classical economics theories, and by the methods of normative analysis, literature research, statistical analysis and empirical test. The main questions discussed in this paper are:First of all, get the characteristics and features of technological progress and labor employment in chinese information industry, by analyzing the development of Chinese information industry, development of technological progress and development of labor employment through related data.Secondly, basing on the characteristics and features of technological progress and labor employment, discuss the influence process of technological progress on labor employment in chinese information industry through the theoretical analysis, basing on the cause of technological progress, demand of Chinese information industry for labor, supply of labor market and the function of educational qualityThirdly, measure the technological progress of chinese information industry and get the relationship between technological progress and external influence factors such as educational quality through statistical and empirical methodsFourthly, test the relationship between technological progress and labor employment in chinese information industry, including the impact on the total number of labor employment, the skill structure and wage gap, while testing the relationship between educational quality, openness and labor employment.Summarizing the full text, some enlightening and valuable conclusions are as follows:Firstly, over the past20years, under the environment of rapid development of information industry and rising index of informationization development, technology level increased year by year with characteristics of high-update speed and high-knowledge, while labor employment, labor wage and the quantity of skilled labor are growing steadily with characteristics of high employment, high rate of employment growth, high incomes and skills-embodied. There are four dimensions during the development of technological progress in chinese information industry:information network infrastructure, computer technology, communications technology and new technology model such an "the Internet of things","Convergence of the Three Networks" and "Cloud Computing"; There are also four processes including embryonic stage, incremental development stage, explosive development and maturity phases, now technology is moving in the direction of intensive and green model. Data shows the quantity of labor and labor wage in chinese information industry are growing steadily, for the quantity of labor and rate of employment growth are in the forefront of other industry or the whole society, overall average wage is in leading position in the industry across the country, college degree or above accounted for higher share of total employment.Secondly, temporal and spatial differences of technological progress of chinese information industry are significantly, while external factors such as educational quality strongly influenced advances in information technology. Temporal and spatial differences of total factor productivity of chinese information industry also appeared to be significance; Improve the level of technology is an important element to total factor productivity. Technology of information industry greatly influenced by external factors:positive effect of educational quality and economic development, positive effect of degree of openness but no effect of foreign direct investment, week effect of government support for science and technology development and residential information consumption coefficient, but both are related to have a positive relationship.Thirdly, there is positive relationship between total number of labor employment and technological progress, and skill-biased technological change exists in chinese information industry. As technology improves, the number and wage of high-skilled labor would increase and the number and wage of low-skilled labor would decrease.Fourthly, to some extent, improving of educational quality can reduce the contradiction between skill-biased technological change and labor employment in chinese information industry. Because on the one hand, the root cause of technology change is due to upgrade knowledge affecting by educational quality, and the other hand, more labors would like to get knowledge for higher income while educational quality improves, which makes more high-skilled labors and less low-skilled labors and the wage gap would decrease. In addition, openness is negative to labor employment in chinese information industry.Compared with the existing literature, the innovation of this paper appears to be:Firstly, this paper discussed the relationship between technological progress and labor employment in chinese information industry for the first time. This paper analyzed the relationship between technological progress and labor basing on each characteristic in chinese information industry which can make up for the theoretical analysis of the relationship between technological progress and employment from industry perspective.Secondly, this paper analyzed the influence mechanism of technological progress and labor employment in chinese information industry systematically, adding an important exogenous factor of educational quality. This paper integrated the effect of educational quality on technological progress and effect of educational quality on labor, and divided the labor into high-skilled and low-skill labor, so as to analysis the process of technological progress on the labor employment in chinese information industry explicitly.Finally, this paper empirically tested the relationship between technological progress and total number of labor employment, the skill structure and wage gap in chinese information industry. At the same time, this paper tested the relationship between educational quality, openness and labor employment in chinese information industry.The influence of technological progress on different types of skill labor employment in chinese information industry is inevitable, because information industry is technology-intensive and labor-intensive, the application of advanced equipment and technology are needed for high-skilled labor force. Advances in information technology will promote the total number of workforce especially high-skilled and their wage, which means the contradiction of technological progress and labor employment in chinese information industry, is dramatic due to skill-biased technological change. To achieve the double objectives of technological progress and full employment in chinese information industry, the paper finally proposed some suggestions as follows:Firstly, optimize the allocation of information resources, and encourage independent innovation, update technology internally.Secondly, create a good external environment for development of the technological progress of china information industry. Change patterns whose situation is regional fragmentation now to ensure coordinated development for information industry. Increase investment in infrastructure in the central and western areas so as to reduce regional difference. Make certain policies and guidance in the field of ways and area for foreign direct investment when expanding openness.Thirdly, improve the educational quality and improve the accessibility of higher education, including promoting educational equity, allocating education resources rationally, focusing on the area of remote, poverty and minority so that more low-income people have opportunity to get higher education and to improve labor skills and incomes especially in remote areas and the western.