A Study On The Relationship Mechanism Between Labor Price Distortion And Human Capital

Under the background of the information revolution in the 21 st century,China's industrial structure has been continuously optimized,and the service industry and hightech industries have been developed on the basis of manufacturing industries to achieve economic transformation and development,and rely on the endogenous growth of talents.The production structure has shifted from being labor-intensive to technology-intensive.In the stable development of the national economy,the employment problem of the labor force is closely related to economic stability.However,in the process of China's rapid development,it will inevitably sacrifice the interests of some laborers and decouple the labor price from its own production value.Based on the local data of 31 provinces and cities in China from 1995 to 2017,this paper studies the correlation between labor price distortion and human capital level,and tries to explore the impact mechanism behind it.First of all,after discussing the related concepts of labor price distortion and human capital,this paper analyzes the status quo of labor market price distortion and human capital,and then analyzes the status quo of the sub-division industry.Correlation.The results show that:(1)From the analysis of the evolution process of time series,the labor price,the marginal output of labor factors and the level of human capital are all rising,showing positive correlation changes.However,due to the mismatch between labor price and labor productivity,the overall degree of labor price distortion is negatively distorted in time series measurement,and it is an evolution of “inverted U-type”.(2)From the perspective of sub-regions,human capital is increasing in the west,central,northeast,and east,while labor price distortions are increasing in the central,northeast,western,and eastern regions,indicating Educational investment,economic development,and labor price levels are heterogeneous.(3)From the perspective of sub-industry,the return rate of human capital investment in the monopoly industry is the highest,the labor price is high,and there is a fixed employment threshold;the negative distortion of the high laborprice of the high value-added service industry causes the talent agglomeration effect,leading to higher The surge of human capital and the increase in the level of competition directly led to the “salary compression” effect,which indirectly led to a decline in the return on investment in human capital.Secondly,it starts from the theoretical model and divides it into basic human capital and higher human capital according to the degree of education.Combined with the marginal output of labor,it calculates the premium level of higher human capital investment relative to basic human investment.Inferred from the model,the high premium level of complex labor comes from three conditions:(1)The increase of human capital investment and material capital investment ratio increases the return rate of complex labor.(2)The increase in the proportion of effective labor combined with technology can also increase the premium level of human capital investment.(3)When the substitution elasticity of complex labor and basic labor is greater than 1,increasing human capital investment can increase the return rate of complex labor.Finally,based on the comparison of the corresponding wage levels,it is possible to theoretically analyze the reasons why the labor prices in the job market are low or false.Then,starting from the idea of grading,the level of education of local employees is divided into four groups: low,low,high and high.The paper discusses the labor price distortion at the level of education at each level in combination with the provincial panel data.The impact of human capital investment.The result proves that the higher the level of education of local employed persons,the degree of distortion of labor price promotes human capital.On the contrary,the lower the level of education of local employed persons,the negative distortion of labor price plays a role in the improvement of human capital.Inhibition,therefore,in order to improve the level of human capital of employed people in relatively backward areas,it is necessary to raise the level of local education and reduce the negative distortion of labor prices.Finally,based on the research of quintile thought,the paper explores the impact of labor price distortion on regional human capital level.Considering the differences caused by different human capital levels,this paper uses the threshold model to calculate the corresponding threshold value.Heterogeneous effects.The results show that:(1)Firstly,the results of panel regression analysis show that with the increase of human capital level,the increase of labor price distortion has a greater inhibitory effect on regional human capital level.(2)The impact of labor price distortion on human capital will have a significant interval effect due to the division of education level of local employed persons.When the level of education is low,it is estimated that it is lower than the average education of 5.7 years.Labor price distortion has a greater inhibitory effect on human capital level.Therefore,it is necessary to strengthen the basic education to improve the level of human capital in areas with backward human resources,reduce the illiteracy ratio in backward areas,and alleviate the negative distortion of labor prices.The phenomenon shows very different results in areas with high human capital levels.The increase in the negative distortion of labor prices can increase the level of local human capital and play a role in talent pooling.(3)Further,this paper studies the impact of labor price distortion on human capital level from the East,West and West subregions.The empirical results show that labor price distortion has great differences in the promotion and inhibition of human capital levels in the three regions.Among them,due to the rapid economic development in the east and the good foundation of human capital,the degree of distortion of labor prices is also at a relatively high level and is comparable to that in the western region.Combined with the variables in the central and western regions,it can be concluded that labor price distortions are improved and manpower the correlation mechanism of capital is to promote post-inhibition.Therefore,from the perspective of improving the level of human capital in the region and improving the brain drain,China should first improve the fairness of the labor market in the western region and improve the degree of distortion of labor prices,and finally achieve a balanced development.Based on the international labor market,human capital,and economic development rules,in order to improve domestic labor price distortions and protect the rights of workers and the healthy development of regional human capital levels,this paper puts forward some suggestions for China's talent security and employment policies: comprehensive improvement China's education investment level,giving full play to the strong support of human capital for economic development,it is necessary to cross the low human capital threshold and improve the labor market mechanism,to achieve rational allocation of human capital between regions,to bring into play the role of urban talent agglomeration,and promote economic health.Sustainable development;Improving labor price distortions,unblocking the production factor endowment structure and price mechanism to improve regional human capital levels,especially in the central and western regions where talent is scarce,is a key step in improving the level of human capital in the central and western regions,reducing brain drain and the overall development of China's economy.