| China is a populous country, abundant labor resources is not only the found of rapid economic growth, but also the root of the employment problem. Since China’s reform and opening up, the allocation of labor force gradually shifts from planned by government to market. The reform of labor market has made great achievements and improved the efficiency of workforce. But there are still many problems in labor resource allocation, and the employment problem is still highlighted. Labor price is the signal of labor flow between regions and sectors to achieve the optimal allocation. The distortions of labor price directly affect the allocation of labor resources and the level of employment. So the study of labor price distortions has important significance to improve the efficiency of labor resource allocation.This paper uses theoretical analysis and empirical analysis, qualitative analysis and quantitative analysis to explores some industries’ labor price distortion’s influence on employment. This paper could be divided to four parts. The first part explains the research background and significance, introduces related concepts and theories, summarizes the former researches of other experts. The second part is the analysis of labor price and employment current situation, then calculates industries distorted data, using the data to observe development of labor market, and explain distortion reason. The third part builds a simple model to find the relationship between distortion and employment amount, and compares the practical and theoretical employment amount. The last part put forward some policies and suggestions in the perspective of labor price distortion. |
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