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The Study On The Provincial Boundary Barrier Of The Chinese Labor Flow:Existence And Regional Differences

Posted on:2018-03-30Degree:MasterType:Thesis
Country:ChinaCandidate:S ZhuFull Text:PDF
GTID:2359330512998738Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
Since reform and opening-up,China's external economic ties continue to strengthen,and the domestic market is opening up gradually.Great achievements in economic construction have been made while the corresponding unified,open,competitive and orderly market system have not been established.The market segmentation of our country originates from the reform of administrative decentralization with the core of " fiscal responsibility system ",which was implemented by the central government in the early 80s of last century.Local governments competed to take administrative measures to restrict the free flow of the market in order to gain more political promotion opportunities.Although China has achieved certain results in eliminating local protectionism and weakening market segmentation,local protection of labor market is the most serious,that is,the largest degree of labor market segmentation in the factor markets.Labor market segmentation or labor mobility barriers are a common phenomenon,which stems from the traditional policy of the restrictions on population mobility before reform and opening up.In 90s of last century,"the tide of migrant workers "has appeared in the coastal economic developed area of our country successively,and then large-scale labor force is flowing between different regions frequently.Especially,after 2000,China has cleared rules and relevant discriminatory measures on labor mobility gradually.China has entered the most active period of labor migration.However,various barriers are still existing in labor mobility cross regional,inter urban and rural and inter industry.The existence of labor mobility barriers,which comminuted the labor market of our country,reduced the allocation efficiency of the labor market and hindered the sustained and stable development of China's economy.Besides,in the background of China's new normal state,the elimination of barriers of labor mobility and the construction of a unified domestic labor market are the;essential measures to promote structural reform,to release the reform bonus and to guarantee rapid economic growth.This paper uses the data of temporary residence permits to study whether there is provincial boundary barrier in China's labor mobility,that is whether the cross-province labor flow is negatively affected by the administrative boundaries between provinces.By analyzing the employment location choice of representative resident,this paper builds an empirical model of the flow of labor macroscopically,and uses the panel data of 31 provinces in 2002-2014 to estimate the influence of provincial boundary dummy variables on labor mobility.The results showed that the estimated coefficient of provincial border dummy variable is significantly negative,indicating the existence of provincial boundary barrier for Chinese labor flow,which leads to a potential reduction of cross-province labor flow between 27.07%and 35.24%in 2014.Meanwhile,the increase of expected income significantly promotes the labor flow,while the employment opportunity partially affects the labor flow.This paper also uses the data of temporary residence permit in the fields of manufacturing and service,in the fields of manufacturing,service and commerce,in the fields of manufacturing,service and agriculture to substitute the data in all fields,and the results confirm the robustness of the above conclusions.This paper further explores whether there are regional differences of provincial boundary barrier among the east,the middle and the west of China.Considering the cross-region labor flow could be affected by equal unobservable factors,this paper adopted Seemingly Unrelated Regression(SUR)to estimate the panel data.The results of the study showed that provincial boundary barrier in the east,the middle and the west of China increase by degrees successively.In addition,in the west of China,provincial boundary barrier is 66.2%to 103.8%times and 33.1%to 51.9%times larger than that in the east and the middle respectively.Besides,the cross-region labor flow has obvious path dependence.
Keywords/Search Tags:Labor market segmentation, Unified market, Provincial boundary barrier, Boundary effect, Seemingly unrelated regression
PDF Full Text Request
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