Financial Development And Underemployment

As the aggravation of the aging problem,It is important to improve labor productivity and make use of the existing labor force.Reducing underemployment rate is an effective way to improve the use of labor force.With the deepening of China's financial development degree,studing the influence of the financial development in underemployment is effective for policy makers to adjust monetary policy to reduce underemployment.What are the factors that influencing the underemployment?How to reduce underemployment rate?How financial development influence underemployment?We would like to use advanced econometric methods and the representative micro-data extracted from questionnaires to scientifically investigate and analyze.The first part of the article is to investigate the distribution of underemployment in China.We study the underemployment distribution of sex,age,urban and rural,region,education level and corporate ownership during the year 1991?1993?1997?2000?2004?2006?2009 and 2011.The distribution of underemployment rate is in coincident with China's economic growth.The result is that female has higher underemployment rate than male,rural area has higher underemployment rate than urban area.and improving education level can reduce underemployment rate.In the second part of the article,we use panel data to study the influencing factors that affects underemployment and the underemployment depth.Results are as follows:The province and region financial deepening degree can reduce underemployment rate.Province financial efficiency can increase underemployment rate,so as in western and central region.while in eastern region,financial efficiency can decrease underemployment rate.For the depth of underemployment,the increase of financial deepening degree reduces underemployment depth in western and central region,financial deepening degree increases underemployment depth in the eastern region.while the increase of financial efficiency increases the underemployment depth.