A General Research Of Financial Expenditure Effects On Employment

In this paper, we firstly discuss the relationship between financial expenditure and employment, and studied the transmit mechanism and effects of financial expenditure on labor demand and labor supply. As for how public finance expenditure affects to labor demand, taking the theories of the Keynes and New Classic Comprehensive School as the foundation. We develope the thory how financial expenditure effects on economic growth and labor demand. Further more, we analyse the financial expenditure structure influence of labor demand. Base on the theory analysis, we use China 1999-2005 of the provinces panel data to test our theories. The experience analysis indicates that, all the private investment and financial expenditure make positive effect to the employment. By compaering the different kinds of financial expenditure effects on employment, we find that the investment of financial expenditure has the biggest effects, next it is consume financial expenditure, and transfer financial expenditure has the least effects.Concerning to the relationship between financial expenditure and labor supply, because the military expenditure and the military army scale taking strong planned feature and the economic method is uneffective. So, we don't study the effects of military expenditure on emplyment. The article make focal on Education Development; Health Insurance; Unemployment Insurance:①The government education budget decide the educational development, so we derectly the relationship between educational development and employment. The theories build two models of educational structure and education scale. The experience evidence indicates that, there are a inverse"U"between educational degree and unemploymnet rate in China. Further more, the statistic test finds that: the expanding of educational scale makes remarkable effects to employment, and educational development will reduce the unemployment. In the influence of educational structure to employment, the expanding junior education will make negative effects on employment, the expanding of higher education will make remarkable positive effects on employment, but the effects are uncertain of senior educaion development.②As for the effects of medical severce expense on labor supply, the article directly purpose is research how the public medical expense affects to the people health and labor supply. We find there are not remarkable different effects on keeping health...