The Research On Factor Mismatch,Income Gap And Economic Growth

China's economy has entered a new normal state.The economic model that simply increases the input of factors is not sustainable.It is urgent to achieve economic growth by optimizing the allocation of resources and structural adjustment on the supply side.So,it is important to explore the effect mechanism of factor mismatch on economic growth,to find the causes of factors mismatch and to mitigate the influence of factors mismatch by improving policies.Based on that,this paper constructs a model to calculate the provinces' mismatch degree of labor and capital for 1995-2014 years.From two aspects of theory and demonstration,this paper examines the causes of the factors mismatch,explores the influence of the factors mismatch on income gap,and studies the transmission mechanism of factors mismatch,income gap and economic growth from two paths.Through the above theoretical analysis and empirical research,the findings are as follows:Firstly,the provinces' elements mismatch presents the "U" trend with the financial crisis as the turning point overall.The East region has the lowest mismatch degree at first,but it has a fast-rising trend after the financial crisis,which is higher than the central and western regions.In 2014,the degree of elements mismatch in the eastern region is higher than that of the central and western regions.Overall,the provinces' wage difference is low,but the growth trend is obvious.Compared with the wage difference,the contribution of the labor market in the industry is more prominent.Secondly,institutional factors such as government intervention,household registration system and dual economic structure significantly improve the mismatch degree of labor and capital,and the level of marketization,openness and information exchanging significantly reduce the mismatch degree of labor and capital.However,the unbalanced development of technological progress,industrial structure and educational level increase the mismatch degree of labor and capital after the financial crisis,which can be attributable to the structural factors.Thirdly,the explanatory power of factor mismatch to the income gap is bounded by the financial crisis.The superposition effect of labor and capital mismatch can explain the 19.4%,27.1%,10.4%and 29%of the income gap between the national,the eastern,the central and the western provinces respectively in 2014.Compared with the actual share of labor remuneration,the factors mismatch does not change the trend of labor remuneration share and the "U" structure,but which obviously reduces the share of labor remuneration in all provinces.Factor mismatch aggravates the hindering effect of income gap on economic growth.In 2014,due to the existence of factor mismatch,the hindrance effect of income gap on economic growth increased by 22.1%,and the economic growth gap increased by 4.7%.Therefore,the existence of structural factors leads to the rising trend of the factors mismatch of various provinces in China in recent years,which not only directly affects the growth of output,but also worsens the income gap,and aggravates the obstacle of income gap to economic growth.Combining with the characteristics of the new normal state,it is necessary to put forward the concrete paths of correcting the elements mismatch,and to provide some reference for the supply side reform at the present stage in China.