Study On Influence Of Capital Deepening And Labor Inhomogeneity On Employment Of Rural Surplus Labor

This thesis begins with the research of the dilemma between labor shortage and unemployment phenomenon in China labor market now, searching for the correlation among deepening of capital,inhomogeneity of labor and the employment of rural migrant labor. In views of actuality at present, all factors above have its own specialty as the transferring of dual economic. The deepening of capital has crowded the rural migrant labor force out, and the theory of"Lewis turning point"does not apply to this phenomenon. Combination of graphics, we inherit VES production model to prove that the developing pattern by deepening capital is not the result of blindly copying of foreign patterns, but the better development route chosen naturally by China economics, in the case of the existence of large gap between the demand and supply in labor force market which is owing to labor inhomogeneity. Then panel data analysis is conducted for making empirical inference on the correlation between capital deepening and employment of all labor especially rural surplus labor by processing data from 1985 to 2008. We hold the opinion that capital deepening exerts negative influences on employment in the primary and secondary labor market, and this crowding effect leads to much more rigorous difficulties to find jobs for migrated rural labor in west China. Although through expansion of production and higher wage by the way of investment, capital deepening has exerted spill-over effect, the gap between the high–quality and lower skilled human resource resulted from labor inhomogeneity leads to more significant negative effect on employment during the capital deepening. These also answer the reason for why technical labors produce a squeeze effect on the employment of lower skilled labor. Regarding the demonstration of theoretical and empirical study, it is advised some suggestions to narrow the labor technical ability gap by boosting the proportion of skilled workforces, to increase employment potentiality in the third industrial etc..