Comparative Study On The Effects Of Factors Influencing China’s Different Parts Of Employment

Our country’s individual income tax policy experience a new round of reform aimed at relieving the burden of middle or low income group, which will have a lot of impact on employment. In theory, there are two ways. On the one hand, individual income tax will impact labor supply via income effect and substitution effect; On the other hand, individual income tax will impact labor demand if the individual income tax can shift to the labor demand.Our country labor supply’s own situation and characteristics such as dual labor market, institutional segmentation of urban and rural areas, unequal income distribution present situation also lead to regional segmentation. The western region labor supply curve therefore have more lack of elasticity and otherwise the eastern region labor supply curve have more elasticity which means can shift more individual income tax to labor demand. The paper divided into two part theoretical and empirical.The empirical part use the eastern, central and western panel data to set up fixed effect variable coefficient model to get the eastern, central and western cities average personal income tax on employment elasticity. Using the theoretical part’s conclusion, we can get the following ideas.The average personal income tax on employment is negative elastic with the eastern region deepest degree, central region second place, the western region the third place.The average personal income tax’s increase lead to employment reduction in all regions but the western region via affecting labor supply; the eastern region via affecting labor demand.In last chapter, add up all other explanatory variables on the eastern, central and western cities employment elasticity and put forward some Suggestions.Acquire combination economic, financial and a series of measures to stimulate economic development to promote employment. Speed up strength of transfer the labor-intensive industry to central and western regions. encourage labor productivity and employment technical research, technical upgrade and technology development.Reduce the structural unemployment by increasing the laborer’s knowledge and skills training which can adapt to the second and the third industry and encourage the development of the second and third industries.Reduce the average personal income tax burden to increase employment. Explore to the personal income tax system which use family as the unit so as to attain to different individual income tax policy objective on the eastern, central and western regions.