Analysis Of The Effect To Laborer Employment And Income Of Foreign Trade

Foreign trade brings about a change in factors market by shifting the importand export price. Manufacturing industry is a department intensive in foreign tradein our country, the change in trade volume and structure determine the change in itssubdivided departments and the employment and salary of workers in differenttechnical departments.China is a big country in accordance with the labor,accordingto the Stolper-Samuelson theorem (SS theory), the trade will finally lead to the risein the reward from plentiful factors and the fall from the scarce factor,however, largeunemployment population exists in our factors market, not to mention the steadilyincreasing new labor forces, which demolish the hypothesis of SS theory in china.As a consequence of it, the model that the trade liberalization exercises an influenceon employment and reward change in form in our country. Since the reform andopening up, with the manufacturing industry the development of foreign trade,manufacturing employment to increase significantly, while the workers relative tosalary increases are limited. In This paper, the employment and labor reward aremeasured by a comprehensive indicator namely, the proportion of the total salary ofthe whole workers in a certain department to the increased industrial value, short forworker salary’s proportion. Through the change of this indicator, we can see the change of worker’s welfare. With the manufacturing as an example, this paper tracesthe real impact of trade liberalization on workers’welfare by observing the change inthe income proportion after clinching the trade.This article from SS theory, in labour force amount increasing condition,construction of foreign trade on laborer share effect analysis framework, design andselection for metering the labor income share index system, deducing andestablishing empirical foreign trade and labor income share correlation regressionmodel, then use the2000-2009manufacturing panel data, the analysis of trade onemployment, wages and labor income share effect.The conclusions from theoretical and practical analyses are identical, the tradeliberalization will improve the welfare of the workers from subdivided departments,and it show the improvement by increasing the employment instead of salary. Theextent to which the trade liberalization increase the welfare of different technicalworkers within the manufacturing industry is different, it is more favorable to theincrease of unskilled workers’ salary. Meanwhile the trade liberalization change thedifferent technical workers’ welfare in different forms, great increase was witnessedin employment for the unskilled workers but in salary for skilled workers. Inaddition, the empirical part divides the trade checking into export and import trade,and the result shows that the growth in export trade inclined to increase theproportion of salary of workers from subdivided departments. Finally in the empirical conclusions on the basis, analyzes the reasons and puts forward the relatedpolicy suggestion.