Research On The Impact Of The Change Of Industrial Labor Productivity On Employment In Shanghai

Development Economics found that labor productivity growth mean labor-saving,which analyzed the relationship of labor productivity, output and employment from static angle.And it appeared that capital replace labor force in the short time,which is the "replacement effect" of labor productivity growth to employment.But according to Keynes'employment theory,improving labor productivity will increase employment opportunities.Labor productivity growth will lead to a chain reaction in the long term such as falling price,increased investment and new products.It will reduce production costs,lower product prices,thereby stimulating growth in product demand,thus increasing output and labor demand.And it saved capital,while the savings of capital be used in invest-ment will increase the demanding for labor.The emergence of new products lead to labor productivity growth,which will ensue expansion of output and employ-ment increase, which is the "compensation effect" of labor productivity growth to employment. By reviewing the literature of industrial labor productivity and employment, we can find that there are some controversy at present about what kind of effect is dominant, that it remains to be further research.As the leader in the construction of China's socialist market economy since the reform and opening-up, the economic potentiality and the technical level of Shanghai in domestic are in the leading position, and the labor productivity growth has made considerable progress. At present, Shanghai has entered the later stages of industrialization and faces the critical period that the leading position is shift from the second industry to tertiary industry. The function of economic structure upgrading, Social division of labor deepening and technological progress rises quickly. The original factor endowments advantage is undergoing a fundamental change. At the same time, with the growing nonlocal population in Shanghai, we are faced with the employment situation will become more severe. In such a backdrop of the times, research on the impact of the change of industrial labor productivity on employment is particularly important and urgent. Therefore, on this background, by in-depth study of the course of the development and changes of industrial labor productivity and employment of Shanghai since the reform and opening-up, this article attempts to explore the law of the development and changes of industrial labor productivity and employment of Shanghai, and analyze the major factor affect them. And it focus on the analysis of total quantity and structure's impact of the change of industrial labor productivity on employment. By building econometric models, this article study the total quantity and structure relationships between industrial labor productivity and employment of inter-industry and inter-firm, and on this basis put forward relevant policy recommendations.This article altogether divides into six parts:The first part is "Introduction". This part introduced the article topic's background and significance, domestic and foreign research results, source of the data and the framework of the article.The second part and the third part analyze current status and trends of the changes and development of Shanghai industrial labor productivity and employment at the macro level by mainly using the statistical data of shanghai since the reform and opening-up, and by using the methods of horizontal comparison, two-dimensional analysis, flexibility and degree of deviation for further analysis.The fourth part and the fifth part studies he relationship between labor productivity growth and employment changes.And the former stress the impact of total employment total quantity, the latter focuses on the impact of structure.The sixth part summarizes the full text and puts forward some policy proposals.The innovation of this paper in general can be summarized in three points:1. For the first time, this paper classify industrial sectors of Shanghai by using two-dimensional analysis.2.This article study the impact of the change of industrial labor productivity on employment systematically by constructing cointegration and VAR model.3.This article study the impact of industrial labor productivity on the changes in the structure of employment in Shanghai systematically.