Under The Agglomeration Environment,How Labor Structure Affects Labor Productivity

As an important phenomenon under the social and economic development,agglomeration always acting vital characteristic in human civilization.From the international vision,global agglomeration has experienced three waves,started at UK in 18th century,then followed by USA 200 years later,and now,developing countries are leading the 3rd agglomeration wave.In China,urbanization is growing rapidly from the perspective of permanent residents,which has reached 55%in 2016,however,the agglomeration is not so welcomed in policy making,household registration system is strictly limiting the population expansion in big cities.According to this situation,"whether agglomeration is needed" is a question triggering many discussions,and New Economic Geography built theoretical foundation for agglomeration economy.Present reviews mostly agree that agglomeration can improve productivity,but "what kind of agglomeration we need" remains relatively unknown.So,based on the researches existed,this paper trying to explore what kind of agglomeration is needed in social development,which is,under the development,how labor structure affects labor productivity.The research focuses phenomenon and reasons,and using labor education level measure skill,density of non-farming employment measure agglomeration,per capita production measure labor productivity.From the phenomenon vision,labor structure is divided as high skilled labor concentration and diversification of labor skill,then analyze which one is better for labor productivity improvement.Empirical test shows that with the agglomeration level rising,diversification of labor skill will improve labor productivity.Furtherly,from the reasons vision,author trying to explain that why diversification is better for labor productivity under agglomeration environment.Firstly,the relationship between high skilled labor concentration and labor productivity is an inverted U type,which means that when high skilled labor concentration is below a certain degree,it will be helpful for labor productivity,however,when high skilled labor is too concentrated,the competition between high skilled labor will cause the damage to labor productivity.Secondly,the more agglomerated area,the more complementary skills are needed.The reason behind this is the bigger market caused by agglomeration promotes the specialization of labor,so more diversified labor skill structure is needed.Lastly,the main power of economic growth has transferred from manufacturing industry to service industry,the production offering of the later one is more limited by area,so in the service industry,agglomeration is more important compared to manufacturing,whereas the demand of labor in service industry is comprehensive,not only high skilled labor is needed,but low skilled group is vital,for this reason,agglomeration is not only attractive to high skilled labor,but also can offer more employment opportunities to low skilled labor group,so the diversification of labor skill structure is formed.At the end of paper,author makes conclusion and offers some political advice according to the analysis before.From the perspective of conclusion,this paper shows that under the agglomeration environment,diversified labor skill structure is helpful to improve the labor productivity,the reasons including potential negative influence of high skilled labor concentration,complementary demand of labor skills and the comprehensive employment in service industry.Base on the conclusion,author advises that household registration system should be deepened when considering regional economic construction,the obstacle should be lowered for labor factor flowing especially for low skilled labor group.Furtherly,economic development should respect the demand of factor flowing,less limitation to demand and more ability to supply are the right way to build a better economic environment,only in this case,can the developed and comprehensive great nation dream come true.