The Effect Of Industrial Upgrade On The Wage GAP

Since the reform and opening up,China's total GDP has achieved rapid growth,and the focus of economic development has begun to shift from focusing on increasing quantity to attaching importance to quality.As the main route to improve the quality of economic development and maintain rapid and sustainable economic development,industrial upgrading has become a must-go path for countries,industries,and companies to choose to transform.The impact of industrial upgrading has begun to show in all aspects of the national economy.At the same time,the employment situation in China is still not optimistic.The problems such as the drop in the number of employees,the widening of the wage gap,the mismatch between the employees required by the enterprises and the quality of the existing employees still exist.Employment as a major livelihood issue has always been the focus of public attention.With the accelerating process of industrial upgrading,it will inevitably have a major impact on the employment volume,employment structure and employment direction of the labor market in China.Existing scholars have not formed relatively uniform standards regarding the definition and measurement of industrial upgrades.The government,mass media,etc.also confuse industrial upgrades with industrial restructuring,and at the same time lack the upgrading of industries(especially as an important component there of Value-chain upgrading)as a factor in the relevant employment issues,a literature on quantitative research was conducted.This article attempts to explore what effect industrial upgrading will have on the wage gap between different skilled labor forces under relatively open conditions,based on the relevant definitions of industrial upgrading.We have come up with practical policy implications for realizing value chain upgrades and adjusting wage gaps under open conditions.The main contents of this article include five parts.The first part is an introduction,focusing on the two major themes of industrial upgrading and wage gap.Based on the background of China's economic development and labor market development,the current situation of industrial upgrading and wage gap is elaborated and combed.Domestic and foreign existing literature,from which found the relevant theoretical defects,explored the possible innovations of this paper;the second part elaborated industrial upgrading and The related theories of wage gap,sort out relevant industrial structure adjustments,wage differences,and global value chains and other theories,and combine the existing literature to explore the theoretical mechanisms of industrial upgrading affecting the wage gap of different skills in China,and propose the theoretical assumptions of this paper;Part of the measurement and specific analysis of China's industrial upgrading and wage gap,mainly measuring and descriptive analysis of the main variables of industrial upgrading and wage gap in this paper,combined with the measured correlation results,the relationship between the two main variables Preliminary forecast;fourth part The empirical analysis of the impact of industrial upgrading on the wage gap first established an econometric model to be used in this paper based on the equation setting methods of Mincer(1974)and Hering and Poncent(2010)and the classical formula of skill wage gap.The variables and related data used are described in detail.Finally,empirical tests are conducted on the industrial upgrading and the wage gap between different skilled workers under the background of the global variable value chain of the main variables in this paper,to verify whether it meets the basic theoretical assumptions proposed in Chapter II.,and a detailed analysis of the test results;the fifth part is the main conclusions and policy recommendations.Based on descriptive analysis and measurement results,the main conclusions of this paper are summarized,and corresponding countermeasures and suggestions are proposed.Specifically,this paper uses the World Input-Output Database(WIOD)to examine the impact of industrial upgrading on the wage gap between skilled and unskilled labor in various industries in China from the perspective of global value chains.The empirical results show that based on the advantages of China's low-skilled labor force,the impact of the industrial upgrading index on the wage gap between skilled and unskilled labor in China's overall industry is negative,that is,the increase in industrial upgrading level has narrowed the gap between skilled and unskilled labor in China's overall industry.The deepening of the degree of openness to the outside world and the increase in capital investment will narrow the wage gap between skilled and unskilled labor;technological advancement,increase in investment in human capital,and increase in labor productivity will increase the demand for skilled labor and expand the wage gap between skilled and unskilled labor inside.Similarly for China's manufacturing industry,the increase in industrial upgrading will reduce the wage gap between skilled and unskilled labor;the increase in external openness,technological progress,and human capital investment will increase the gap between skilled and unskilled labor in the manufacturing industry.For the service industry in China,there is no significant correlation between the two.Although it is concluded that lengthening the value chain will reduce the wage gap between skilled and unskilled labor,it does not pass the significance test.The other variables have widened the wage gap.