An Empirical Study On China's Economic Growth And Unemployment

This paper aims to discuss the relationship of economy growth and unemployment rate in China's transitional period, to analyze the reason of the coexistence of high economy growth and persisting serious unemployment in China. After these analyses, some policies are brought forward to solve this issue.In the first chapter I introduce the background of growth-unemployment research, the measure I used and the innovation of this paper. Then, chapter 2 explains the main theories of this research-Okun's law and effective employment, the history of Okun's law and it's theoretical and policy significance. Chapter 3 is the principle part of this paper, which presents the relationship of economy growth and unemployment rate in China's transitional period, then I make three regression test based on the data I got, and at last I find the real relationship between GDP growth and unemployment rate. Then, in chapter 4 I explain the reason for the variations of Okun's law in China, which consist of economy factors and history factors. Then in the last part of this paper I put forward some policy revelations and advice.