The Research On The Labor Market Structure Effects Of Inflation In China

Since the reform and opening up, there were several rounds of inflation in China. Inflation had brought great influence to the national economy, people’s living standards and social stability. Between the different rounds of inflation, the motivated reasons were also different. The inflation had gone through the type of cost-push, demand-pull and structured. The factors involved inflation were related and complex.With the rapid and steady growth of China’s economy, as well as the alleviation of the international economic crisis, a10-year period of low inflation in China is no longer possible. The CPI inflation rate are out of the shackles which the monetarist doctrine insisted and has new features. At the same time, with the deepening of China’s market-oriented process, the dual economic structure transform to the unitary economic structure. Correspondingly, China’s labor market as the urban-rural dual structure occurs a huge change. The synchronization between the labor market structure and inflation makes us to connect them.In this context, a growing number of scholars began to study the impact of the labor market on inflation. An economist at Merrill Lynch directly pointed out that there is great contact between the labor market structure and inflation. However, academic research in this area is still deficient. This paper compares and analyzes the developments of the labor market structure and inflation since the reform and opening up. The analysis fingers that the labor market structure impels inflation greatly, especially in terms of the formation process of cost-push, the structure and input inflation. In addition, this paper also predicts the inflation in the future and makes some suggestions.