Why Employment Structure Lags Behind The Industry Transformation

Since reforming and opening up, with the rapid development of economy, China’s employment structure and industrial structure is in constant adjustment and transformation. The relationship between the two are mutual, the supply of human capital is required for industry transformation, and industrial upgrading and transformation must be accompanied by Labour transfering from labor intensive and capital intensive industry to knowledge intensive industry.the industrial structure of China also changing from low level to high level, which is consistent with Chenery and Kuznets.But unlike their analysis conclusion is that China’s employment structure transformation seriously lags behind the industry transformation.Through reviewing the literature, it tells us that studies are mainly from policy and macro level to explain China’s employment structure lags behind industry transformation, few are from the vision of human capital to interpriate this phenomenon. As an important factor, human capitalplays an important role in economic development. Therefore starting from the microcosmic individual, learning human capital factor in the phenomenon of employment structure lags behind the industrial transformation is also a new and valuable research direction.Chapter Two, Literature review. Have a review on employment structure and industrial structure coordination research literature, the studies mainly use three industrial structure deviation index, econometric regression model, gray correlation analysis and other research methods, and all concluded that China’s employment structure were seriously lag in the industrial structure. Scholars mainly focus on three aspects to analyze the reason why China’s employment structure seriously lags behind industry transformation, they are the institutional features, the industrial operation pattern and the lonth of labor contract. And the analysis of the human capital was not involved.Chapter Three, the analysis of human capital’s impact onemployment structure and macro economic development. Human capital as the most important factors of production, has an important influence on economic growth and economic development, the study of this chapter is intended to point out that it is deserved to study why capital employment structure lagging behind industry transformation from the perspective of human capital. Firstly, the chapter a brief review the western economics theory on human capital and economic growth, and then through inducing the human capital investment structure in endogenous economic growth model, the model tells us that economic growth will be affected by the quantity and structure of human capital investment. In Equilibrium, the higher the proportion of output on human capital investment, the greater the output per effective labor. The maximum increment of human capital and the output per effective labor both require that the proportion of resource allocation in human capital investment is equal to its input and output elasticity. Secondly, to analyze the import role of human capital to the optimal and upgrading of industrial structure. sustainable Economy growth requires that production structure should keep changing to adapt to the market demand, and the change of production structure depends on the human capital and other factors of production to be successfully transfered and redistributed among various sectors. Optimization of the human capital structure is the key to industrial upgrading. Human capital is not only beneficial to the upgrading of traditional industries, but also promote the generation and development of new industries.Chapter four, analyzing human capital factor on the employment structure lagging behind the industrial transformation. Human capital plays an important role in economic structural transformation, and the employment structure embodied in workers with different levels of human capital configurated in each industrial sector. This chapter to analyzing the phenomenon of employment structure lagging behind industry transformation from the perspective of human capita.Using independent sample T test and descriptive statistics method, to analyze workers’ human capital resources allocation capacity and the group differences, the results show that the lack of human capital resources allocation capacity is a key reason for the employment structure lagging behind the industrial transformation, and employees with different degree have different resources allocation capacity.Chapter Five, the plight of human investment in education. Education as an important way of promoting the formation and accumulation of human capital, the insufficiency of human capital resource allocation ability means that China’s education investment policy needs to be improved. This chapter analyzes the reason why human capital resource allocation ability deficiency from the quantity and structure of education investment, and found that the insufficient amount of education investment and the imbalance distribution between local and central institutions,such as secondary vocational schools and institutions of higher learning, have bad influence on the quality of the school’s teaching and the formation and accumulation of human capital.Chapter Six, conclusion and policy recommendations. Human capital a key factor for economic growth and industry transformation, the weak of human capital resource allocation ability lead to China’s employment structure severely lagging behind industry transformation, and the insufficient and structural imbalances in education investment badly affect the formation and accumulation of human capital. Therefore, we should increase the education investment scale, meanwhile ensure that the investment between local and central educational institutions, especially higher education and secondary vocational education, to be balance which help to enhance the level of human capital. To improve the quality of human capital is an effective way to relieve employment structure lagging behind the industrial transformation, and is conducive to the sustainable development of social economy.There are twocontributions in this article. First of all, its research perspective is new. Existing literatures are mostly from a macro level to analye the phenomenon of employment structure lagging behind industrial transformation, well this paper try to explain the cause of employment structure lagging behind the industrial transformation from the perspective of human capital which provides a new field in employment structure and industrial structure coordination. Secondly, the theoretical model of this paper is carefully improved. Learning from existing research, the paper builds an exogenous growth model which contains the structure of human capital investment which id based on MRW model. The deficiency of this paper is that only from the amount and structure of education investment to analyze employees’ weak human capital resource allocation ability is insufficient, even though these two aspects has important effects on the accumulation of human capital.Other factors like school major setting, curriculum and management system may also affect the formation of human capital, well because these factors cannot be quantified and the data collection is difficult, the paper does not involve.