Study On The Employment And Wage Effect Of Vertical Specialization Division On The Basis Of China Divisive Labor Market

Since the nineteen nineties, economic globalization develops rapidly，Internationalmarket integration and Production fragmentation in parallel，more and more developingcountries participate in international vertical specialization division and trade. Verticalspecialization Division is deepening International division degree to Process Level，thereby extending the scope of international division and trade benefits. Chinaparticipates in the international chain smoothly by virtue of comparative advantage likecheap labor and so, with the following business volume rising, the impact ofinternational vertical specialization on China’s economic development has caused thewide attention of the community. In view of current domestic literature related to theemployment and wage effect of vertical specialization is very limited, this articleattempts to research the impact of participating in international vertical specialization ondomestic employment and wage level from labor market division perspective.This article first analyzes the status and characteristic of international verticalspecialization, and then calculates the domestic total and industry vertical specializationindex by Hummel’s method as degree assessment of china in international verticalspecialization, discovering that the vertical specialization division index ofCommunications equipment, Computers and other Electronic equipment manufacturingis higher while the Agriculture Forestry Animal Husbandry Fishery and otherlabor-intensive industry is relatively low, the whole Vertical specialization index trend isrising. At the same time, China’s labor market is currently divided to two partial parts;one called Primary market presents difficult employment for College students while theother called Secondary market presents labor shortage for Migrant workers.In view of the above situation, this paper firstly construct a theoretical frameworkabout the vertical specialization influence labor market employment and wage level,detailed analyzing the mechanism of action among them, and then establishmeasurement models among vertical specialization to the primary labor marketemployment and wages, vertical specialization to the secondary labor marketemployment and wages, vertical specialization to the total employment and total wages,detailed and deeply studying what role has vertical specialization division played in theforming process of China’s labor market pattern. We discover that although China’sparticipation in international vertical specialization promotes to migrant workers as the representative of the secondary labor market employment and wage increases, does notincrease college students to represent the main labor market employment and wagelevel, On the whole international vertical specialization increases total employment andimproves the total wages level. At this case, this paper puts forward to suggestions asfasten our country industry chain upgrade, optimize undertake structure, at the sametime improve the secondary labor market employment security system and policy assoon as possible to resolve the major labor market “difficult employment” and thesecondary labor market" labor shortage" problem, and try to rise the whole employmentand wage level.