Labor Market Integration Level Statistical Measurement Of Zhejiang Province

Labor market plays a key role in the market system, and its operational efficiency is an important indicator to reflect economic market development level and competition. Since the policies of reform and opening up, our country has developed a series of regulations and policies, and also carried out many reforms. Obviously, these measures has made the household registration system of labor market weaken slowly. Such factors like ownership reform of state-owned units and the reduction of barriers to enter some industries all bring a change in China’s labor market. How effective these measures are, what changes have they brought to our labor market and economic development, what’s more, what is the status quo of the labor market integration? These questions are all worth us further discussing. Domestic and foreign scholars have done a lot of research on labor market segmentation, but most of them focus on the text of segmentation existence and have never studied the labor market development trend. Being on this point prompts this paper to measure the trend in the labor market integration, so the focus of this study is to evaluate the labor market integration trend.Labor market segmentation is that the labor market can not be free-flowing, that is to say, labor flow barriers exist in different markets, on the basis of segmentation, integration is proposed, and under the full integration of the labor market, there is no obstacle in labor mobility. If wage differences exit, labor factor will shift from the low-wage market to the high one to achieve balance, thus under the same condition of human capital, there should not exist wage income differences among individuals. Then according to related theories, this paper will use wage income differences of non-human capital to indicate the size of the degree of labor integration. Generally, with the same human capital, wage income difference is smaller that show the higher the degree of the labor market integration is; Conversely, the greater the difference of wage income is, the lower the level of the integration is.The labor market integration is a gradual process, which is formed from the local labor market to the regional, and finally to the national. Zhejiang Province that economy developeds is abount in labor input, so the significance of studying its market has broader representativeness. The main manifestations of labor market integration of Zhejiang are urban-rural integration, ownership integration and industry integration. Therefore, the evaluation of the overall labor force integration process is fullfilled on the above three aspects. Based on Chinese urban household survey data from2002to2007, this paper applies two methods to measure the labor market integration:One is labor market segmentation model which is constructed by the Mincer equation based on Orr (1997) to measure and analyse the trend of labor market integration; The other is using relative price index model that academia used to measure the commodity market integration to construct the index of labor market integration model, and use it to measure the labor market integration.The empirical results are as follows:the level of urban-rural integration as well as the ownership integration of labor market in Zhejiang Province is slightly improved, but the industry declined. This shows that Zhejiang Province has achieved some success in the reform of household registration and ownership reforms, whereas little in the reform of the industry. Finally, relevant policy recommendations are proposed from the level of urban and rural, the ownership and the industry.