The Income Effect On Labor Market Integration In The World

Labor markets around the world have become increasingly integrated due to the fast development of transnational flowing of labor force, especially through international trade. This has affected the labor income both of world and every country. Along with the openness of labor market in China, the transnational flowing of labor force from China has become very important component of world labor market. So analyze the effect of world labor market integration on labor compensation is very important.Object of this article is the effect of world labor market integration on labor compensation. After analyzing the current situation of labor market integration and the factors that expand labor globalization, we analyze the mechanism of world labor market integration on labor compensation. Then, we use a econometric model to analyze the relationship between the labor compensation and labor market compensation, on the basis of trade between China and America.The result indicated that international trade is the most important channel world labor market integration. While enhanced absolute compensation, labor market integration lowered the whole relative level of labor compensation. But it has different effects on skilled-department and unskilled-department: raised the relative level of labor compensation of skilled-department, but lowered the relative level of labor compensation of unskilled-department. Then author give some proposals on how to improve the quality and benefit of transnational flowing of labor force from China.