| Since the 1990s, as a special model of production and trade, vertical specialization has got a high speed development and has a significant influence on the economy of countries around the world. The international division of labor no longer just simply stay within inter-industry or intra-industry division of labor, but further refine into more micro intra-product division of labor. The production is divided into several continuous links or processes, and each link (process) is arranged to different country or region to produce. The different production process and process of production factors have different needs, especially the demand for different types of labor. So countries at different levels of the value chain to participate in the process of vertical specialization, its employment structure will be more or less affected by varying degrees.Under the circumstance of further refinement of the international division of labor, with the comparative advantage of labor and resources, China’s manufacturing industry successfully gets into the system of global vertical specialization, receives the processes or links transferred out by developed countries. The development of this division of labor will inevitably affect China’s labor market. Domestic scholars researches about What is the impact on labor force employment structure of our country when China’s participation in international vertical specialization is less.combined with the current situation of employment of China’s labor market, this paper attempts to study the impact of vertical specialization on China’s employment structure.The first part mainly introduces the background, purpose and significance of this paper, and define the concept of vertical specialization and employment structure.The second chapter reviews the correlative literature about the impact of vertical specialization on the employment structure both at home and abroad; The third part mathematically analyses how to affect on employment structure in the process of vertical specialization.The fourth part choosing 19 industries of China from 1997 to 2011, using the selected vertical specialization index and the relative employment of skilled labor to measure the degree of vertical specialization and the level of the employment structure, analyses the status quo. The fifth part is the empirical part of this article. Firstly, we establish a fundamental model. Due to the employment is a long-term process, having obvious cumulative effect:the level of the employment of past will have significant effect on the ability of the employment of right now, so we introduce the first-order lag of the relative employment of skilled labor into the model, and extend it to be a dynamic panel data model. Then using the first-order difference GMM to regress the model, and further divide the 19 industries into low technology industry and high technology industry, then respectively measure estimation. Finally, through the empirical analysis coming to a conclusion:in general, taking part in vertical specialization have a significant impact on labor market in China.that is, vertical specialization has pulling effect to industry overall employment, but the vertical specialization can not increase the relative demand for highly skilled labor and not improve the employment structure of our country. Specific to different types of industries:low technology industry and high technology industry, the vertical specialization has different effects on industry employment structure of two different types. Chapter six summarized the above research, and according to the conclusion and the reality of China to put forward the corresponding suggestions:to accelerate the transformation and upgrading of enterprises to improve the level of employment, to encourage high technology industry to participate in the professional division of labor for increasing the high-skilled personnel requirements,to increase the corporate R&D investment,and actively carry out technological innovation. |
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