Labor Misallocation,Regional Economic Development And Industrial Structure Evolution

In recent years,China's commodity market is booming,however,the development of the corresponding labor market is far behind the needs of the development of commodity market.Because of the widespread existence of the division of the labor market,industrial monopoly,intervention from administration government and so on,which impedes the effective flow of labor between industries and regions,thus leading to the marginal output of labor deviating from the market price of labor,this is what we called labor misallocation.The misallocation of labor resources directly leads to the decline of the efficiency as well as affecs regional economic development and the evolution of Industrial Structure.This paper starts from the provincial and industrial perspectives.Based on panel data of 31 provinces,municipalities and 8 industries in China in 1997 and 2016,this paper measures the corresponding relative misallocation of labor.After that so can to determine the number of labor force and the total output value under the undistorted state of each industry.This paper analyzes the influence of labor misallocation on regional economic development by comparing the regional total output and labor output per capita with or without labor misallocation.The index of industrial structure evolution is calculated to further analyze the influence of labor misallocation on the evolution of industrial structure.Later on,factors that will affect labor misallocation need to be further analyzed.According to the empirical analysis,the conclusions are as follows.(1)In the eastern region of China,labor allocation is relatively insufficient,while in the central and western regions,labor allocation is relatively excessive;in the primary and tertiary industries,labor allocation is relatively excessive,while in the secondary industry,labor allocation is relatively insufficient.(2)The difference in wages between regions and industries,the degree of government intervention,the degree of monopoly and the difference in human capital will worsen the corresponding labor misallocation.(3)The per capita output of labor in the eastern region under the undistorted labor allocation is slightly lower than the actual level,but the anti-overtaking in 2013 indicates that the labor distorting configuration in the eastern region has promoted the regional economy,but in 2013 it turned into inhibition.The per capita output of the central and western regions in the non-distorted state is higher than the actual level,indicating that the distorted allocation of labor has always inhibited the economic development of the central and western regions.(4)The industrial structure rationalization index under the non-distorted labor allocation are better than the actual level,indicating that the existence of labor distortion configuration will hinder the evolution of industrial structure.Finally,combined with the results of empirical research,this paper puts forward some corresponding policy recommendations to improve the status of labor misallocation.