Research On The Misallocation Of Labor Factor In China And Its Cause Analysis

With the fast development of economy in the past forty years,there was no doubt that demographic dividend was important for China's economy.And this was proved by many researchers.Because of aged tendency of population,some social phenomena appeared including the shortage of migrant workers and rapid wage gains on the southeast coast of China.It means that China has get thought "Lewis turning point" and the labor force gradually shifts from surplus to shortage.Given the limited supply of labor factors and the intensification of population aging,it is particularly urgent to study the rational allocation of existing labor factors among the three industries.To maximum total production among three industries,the research reviews some classical paper including Petty-Clark theorem,which focus on rationally allocating labor factors in three industries.Under the assumption that the total amount of input factors and the marginal income are unchanged in the short term,the labor factors are measured by using the two indicators of the number of employed people and human capital.The optimal allocation of labor factors is established by means of a linear planning tool to optimize the labor factor allocation model.According to the difference between the actual conditions and the optimal configuration of the labor factors,the distorted degree of the distribution of labor factors is measured.Finally,using the method of stepwise regression,we analyzed the effects of six major factors,such as the degree of open foreign policy,the level of market openness,the degree of industrial structure optimization,the level of education received,the level of technological progress,and the level of information exchange.Subject to the availability of data,this article focuses on the analysis of changes in the distortion of the labor factors from 2003 to 2015.In addition to the data that can be obtained directly,most of the data need to be estimated based on accounting methods.Using the above two types of data,the conclusions as fallow:(1)The flow of migrant workers is an important factor in reducing the distortion of labor allocation.(2)The allocation of labor factors in the primary industry is inadequate,the allocation of the secondary industry is more appropriate,and the labor resources in the tertiary industry are over-allocated.(3)The importance of the rational allocation of various factors such as the influence of human capital,the number of employed people,etc.is different.Finally,according to the factors that affect the disposition of the labor force,the corresponding policy recommendations are proposed.