Labor Income Deviation,Labor Supply And Economic Growth In Megalopolis

Labor supply is the core element and basic element that determine economic output,and the growth of effective labor supply determines economic growth.However,there are many factors that affect the labor supply in a region,and the deviation of labor income is very important to restrict the labor supply.The relationship among regional labor income deviation,labor supply and economic growth is very complex,and Megalopolis has gradually become a research hotspot because of its special spatial structure,which organically combines the three factors.For a long time,the distortion of labor income and marginal output has been widespread in China’s labor market,and the contradiction between labor income and productivity improvement and the improvement of workers’ welfare has been hotly discussed.Whether the existing Megalopolis can take the lead in promoting the labor income to catch up with the marginal output growth and effectively improve the ability to attract and gather talents is not only related to the position of Chinese Megalopolis in the world economy,but also an important starting point for the domestic industrial upgrading and optimization.Exploring and clarifying the mechanism and specific effects of labor income deviation and labor supply on economic growth in Megalopolis,and coordinating the relationship between them are conducive to providing empirical support for improving the quality of Megalopolis in China and opening the double-cycle development model.China’s economic development started late,the existing Megalopolis grow slowly,and the attraction of excellent economic factors is not dominant.Especially in recent years,with complex international relations and weak global macro economy,optimizing the deviation of labor income in Megalopolis and promoting regional effective labor supply can provide a source of power for promoting economic growth.Therefore,cultivating world-class Megalopolis have become an urgent task for China’s future high-quality economic development.Bos Wash Megalopolis in USA,as the most advanced space organization,direct connections between the US economy and the global loop,for the development of regional economy has a good impelling effect.As America’s "Main Street",Bos Wash not only provides many basic services for the country,but also provides transnational economic space for foreign enterprises.In 2013,Bos Wash’s gross regional product was about US $3,082.8billion,such a huge volume of development comes from the healthy pattern of spatial division of labor,lasting attraction and gathering vitality.Reasonable division of labor space in the optimization of labor income returns,it can effectively avoid vicious competition and excessive similarity,then stimulate labor supply enthusiasm,with high return and high participation of the two-wheel drive to promote regional economic growth,achieve the development advantages of both international and domestic.In the increasingly fierce international competition,China’s Megalopolis construction faces double pressure in the aspect of factor attraction.On one side,the relative surplus of labor and the lack of talent go hand in hand,on the other side is that falling Labor force participation rates coexist with negative earnings returns.Therefore,to improve the quality of Megalopolis and solve the agglomeration bottleneck,it is necessary to learn from the development experience of advanced Megalopolis and make scientific planning while studying the current situation of Megalopolis in China,so as to prevent the development of Megalopolis from impeding economic growth due to uncoordinated development.The research work of this paper mainly focuses on the following aspects:(1)On the basis of a clear concept,the evolution process of the theory is sorted out.With CD production function,CES model and labor supply model,stripping off the key factor of regional economic growth labor supply,it establishes a theoretical basis for the deviation of labor income and the influence of labor supply on economic growth;(2)To verify the positive significance of Megalopolis labor income deviation to individual space job selection,and measure the deviation of labor income in China’s three typical Megalopolis and compare with Bos Wash Megalopolis in the United States to find the differences;(3)It is verified that individual space selection promotes economic growth by matching with spatial division derived from regional space to enhance labor supply.Based on the representation of differences between Chinese and American Megalopolis,the paper identifies different spatial division of labor and different development stages of the three major Megalopolis in China based on the deviation of heterogeneous labor income.The positive effects of labor income deviation and labor supply on the economic growth of Megalopolis are empirically tested.(4)Natural experiment is designed to test the policy performance of spatial reform on economic growth of Megalopolis.Finally,we draw lessons from Bos Wash’s experience to inspire the development of China’s Megalopolis.During the research process,the main propositions obtained in this paper are as follows:(1)Compared with non-Megalopolis areas,Megalopolis income deviation has more advantages and affects individual labor supply;(2)Individual space selection can enhance labor participation and promote economic growth through matching with spatial division of labor derived from Megalopolis space.This paper demonstrates the above propositions by combining theoretical derivation with empirical analysis.The main conclusions are as follows:First,the deviation of labor income in Bos Wash Megalopolis of the United States is better than that of China Megalopolis in the same period,that is,the ability to attract workers is stronger.Its typical advantage is that labor income is subject to less unilateral downward deviation,this shows that in world-class Megalopolis,higher division of labor and occupation alleviates disadvantages such as excessive competition,and higher quality and richer choices provide the possibility for individual labor to accurately match positions,thus forming spatial division of labor and stimulating labor supply.Second,compared with other regions in China,the Yangtze River Delta,Pearl River Delta and Beijing-Tianjin-Hebei Megalopolis have more obvious job advantages,which undoubtedly provide more powerful development opportunities for workers.From the perspective of time dimension,the labor income of China’s three major Megalopolis is affected by more downward distortions year by year,which means the agglomeration of high value-added sectors is insufficient.Although these three Megalopolis are better than the national figures,they are far less attractive than Bos Wash Megalopolis in the United States for its continuous agglomeration.Therefore,it is not enough to focus only on domestic differences in establishing high-quality world-class Megalopolis.As the spatial carrier of the world economic center,it is a huge challenge to improve the agglomeration of international talents,and the competition is more international.Third,Bos Wash Megalopolis of the United States has a clear spatial division of labor,while the threshold test of China’s three major Megalopolis shows that only the Yangtze River Delta Megalopolis initially presents a three-tier spatial division of labor structure.The laborers enter into different spatial jobs in different levels with income deviation difference,which is connected with the functional orientation of different cities in the Megalopolis.The job supply of workers in the third level is most significantly affected by income changes,and is more easily stimulated by income returns than the first and second levels.It can be seen that the development of Megalopolis in China is not mature,and there is a big gap between China and the world-class Megalopolis.Fourth,Through the empirical analysis of the impact of labor income deviation on economic growth in China’s three typical Megalopolis,it can be found that,as a whole,the optimization of Megalopolis labor income deviation has a significant impact on economic growth.According to different Megalopolis,the empirical results show regional heterogeneity.Specifically,in the Yangtze River Delta Megalopolis,the Pearl River Delta Megalopolis,different urban labor income deviation has a promoting effect on growth of per capita GDP,but GDP growth for the negative effect,Beijing-Tianjin-Hebei Megalopolis labor income deviation affects the urban per capita GDP growth,GDP growth is positive,and the spatial structure,labor participation were significantly influence the three Megalopolis of per capita GDP.Only the spatial elements of the Yangtze River Delta Megalopolis simultaneously affect the GDP growth rate,showing a typical inverted "U" shaped development trend of urban functional division.It can be seen that the economic growth of different Megalopolis and different cities is not uniformly affected by the deviation of labor income.Although the deviation of labor income in the Yangtze River Delta Megalopolis have advantages,there is still room for the promotion of spatial cooperation because the coordinated development between cities has just started.Due to the concentration of labor-intensive industries,the similarity of industries and the lack of dislocation division of labor among different cities,the Pearl River Delta Megalopolis present an urban agglomeration pattern with low coordination.The Beijing-Tianjin-Hebei Megalopolis,the gap between the cities is huge,coordinated development is the top priority.Fifth,the impact of Megalopolis reform on the division of labor space and economic growth of Megalopolis depends on the clear identification of the development stage of urban agglomeration.Optimized regional policies are conducive to coordinated optimization and economic growth.The main contributions of this paper are as follows: First,it complements the theoretical research of Megalopolis labor income deviation,labor supply and economic growth.Combining the individual and regional perspective,the method of microscopic data to measure income from urban agglomeration in the labor force,on the basis of their recognition threshold effect to achieve the spatial division of technology,reveals that the Megalopolis of labor income deviation affect labor supply micro basis,verify the positive role of urban economic growth.Second,according to the need of empirical analysis,a variety of analytical methods are properly integrated.Using Two-tier Stochastic Model of depicting urban agglomeration spatial position differences and appeal,based recognition model and the data of Threshold Effect spatial layering(Threshold Effect)and labor force,and then using 2 SLS(instrumental variable method)and GMM(generalized moment estimation method)to explore the Labor income from influence on urban economic growth,finally the nonparametric method SCM(synthetic control)simulating space reform performance,inspection at different stages of urban agglomerations policy impact on the environment.Thirdly,in order to make the above conclusions more realistic and scientific,this study chooses the comparison of major Megalopolis in China and the United States,so as to obtain rich information supporting the above conclusions and eliminate the impact caused by the differences in system,space and development stage.