The Impact Of Labor Market Distortions On Total Factor Productivity

The focus of the article is mainly on the influence of labor market distortions on TFP.According to the two departments of agriculture and non agriculture model as the theoretical basis,I deduce the influence of labor market distortions in TFP,and find that the relative level of non-agricultural labor plays a mediating role in the process of labor market distortion affecting total factor productivity.In order to quantitatively study the effect of labor market distortion on total factor productivity,I choose the individual fixed effect model and analyse the data of 30 regions in China for 1998-2015 years,and then draws a conclusion:On one hand,the labor market distortion directly affects the total factor productivity.On the other hand,the level of non-agricultural labor played a mediating role and indirectly affected total factor productivity.Under the current national conditions in China,reducing the degree of distortion of the labor market can effectively promote the growth of total factor productivity.In the context of the gradual decline in the growth rate of total factor productivity in China,I believe that this study is beneficial to the government to formulate corresponding public policies to improve the integration of the labor market and to promote the increase in the rate of total factor productivity growth.The existing research based on labor market distortion often falls on labor productivity,and this paper introduces the distortion of labor market into the growth model of total factor productivity,and reveals the mode of action and influence ways of labor market distortion to total factor productivity in detail with the method of theoretical proof.Therefore,this paper provides a new perspective for studying the growth of TFP.