Labor Heterogeneity And Regional Income Disparities

Since reform and opening up, China’s economy has been developing rapidly, the per capita income level enhances unceasingly. However, since the 1990 s, our country region presents the trend of widening income gap. With the rise of knowledge economy, the role of human capital in economic growth by economists began to notice. Labor heterogeneity and regional income gap economists began to be widely studied. However, for a long time, scholars at home and abroad are ignored the heterogeneity of production function to the impact of regional disparities, at the same time, because of the existence of laborer heterogeneity exists heterogeneity in different parts of the consumption structure, consumption structure of different regional income gap also have different impact. Research labor heterogeneity, therefore, it is necessary to study the production function heterogeneity of regional heterogeneity and consumption structure of the influence of income gap.In this paper, by adopting the combination of theory and empirical methods, to China’s 31 provinces and cities regional income gap and the heterogeneity of labor analysis and description on the current situation and the heterogeneity of the consumption structure, provides the theoretical and empirical analysis on the realistic foundation. On the analysis of labor heterogeneity and regional income gap, according to the production function theory, the theoretical analysis model was constructed, and then using the panel data model, empirical analysis model is constructed, through empirical analysis. We found that features three major areas as a result of the existence of labor heterogeneity, differences make regional production function, labor heterogeneity caused by the production function differences explain three earth range 25% of the income gap. At the same time, by introducing virtual variables, we found that between east and west internal production function are also different. Labor heterogeneity on the promoting function of our country’s economy is still in vulgar. Heterogeneity in the consumption structure of regional income gap, the influence of the first through the theoretical analysis of labor heterogeneity on the consumption structure is discussed the effects of heterogeneity, and then discusses the consumption structure, the relationship between the industrial structure and economic growth. In the empirical analysis stage, by the method of granger causality test based on heterogeneous group lead the relationship between the three provinces of our country The empirical results show that the consumption structure promoted the economic growth in the east, but in the Midwest, the consumption structure did not promote the Midwest industrial upgrading and economic growthBased on the above research, this paper puts forward the following opinions and Suggestions: to enhance the level of human capital in our country. Encourage the rational flow of high-quality talent, narrow the gap between regional human capital; Transformation of the mode of economic development and expand the role of human capital in economic growth; Improve the income distribution mechanism, to raise the income level of low-income workers, narrow the gap between regions; Change the consumption idea, promote the consumption structure upgrade in the Midwest.