Research On The Impact Of Rising Housing Prices On The Employment Level Of China’s Service Industry

In the report to the 19 th national congress of the communist party of China(CPC),xi jinping said: "employment is the biggest concern for people’s livelihood.We must adhere to the strategy of giving top priority to employment and the proactive employment policy to achieve higher quality and more full employment." The pursuit of full employment is an important goal of national macroeconomic policy.The outbreak of the novel coronavirus in 2020,resuming work,resuming production and promoting employment is the first important meaning for social stability and economic development.With the development and adjustment of the economic structure in the later period of industrialization in the theory of channari industrialization stage,the ability of the secondary industry to absorb employment is gradually shrinking.The service sector is the most powerful economic sector to absorb employment and has become an important carrier of employment and reemployment in China.Corresponding to this is,as an important component of the real estate industry,service industry since 1998,after the housing reform,the rapid development has become the pillar industry of national economy,China’s large and medium cities housing prices have been on the rise,house prices as signals of commodity housing and land element configuration,profoundly affects the economic activity of the city and the people’s way of life."To ensure growth,stabilize housing prices and promote employment" has become an important mission of policy makers around the country.To explore the impact of rising housing prices on the employment level of the service sector and its influencing mechanism is helpful to provide an important basis for the employment selection law of the labor force and the rational distribution of the employment structure under the dual dilemma of high housing prices and severe employment.Based on the perspective of economics and sociology,this paper clarifies the impact of rising house prices on the employment level of service industry from the perspective of theory and mathematical deduction.Through panel data of 35 large and medium-sized cities in China from 1999 to 2017,the static panel model is estimated with the parameters of fixed effect and comprehensive generalized minimum two multiplication,and the model is solved with the tool variable method and differential generalized moment estimation(GMM)This paper empirically studies the impact of urban housing price rise on the employment level of service industry.The results show that:(1)the rise of house price has an inverted U-shaped effect on the employment level of service industry.At present,most cities have not reached this inflection point.For every 1000 yuan rise in house price,the employment level of service industry has increased by 0.4-0.5 percentage points,but house price is not the most important factor affecting the employment level of service industry.(2)There is regional heterogeneity in the impact of house price on the employment level of service industry,among which the most obvious effect of rising house price is on the employment level of service industry in the western region,followed by the eastern region,and the smallest in the central region.(3)The spatial Doberman model shows that the positive effect of housing price on service employment mainly comes from the city interior,while the indirect spatial spillover effect of neighboring cities is negative,but the effect is small.(4)The rise of house prices has a significant positive impact on the technology and capital intensive service industries such as information software,business services,finance,real estate,etc.,and has restrained the public service industries such as water conservancy environment,public management,education,etc.Based on the above conclusions,in order to "ensure growth,stabilize housing prices and promote employment",this paper suggests that local governments should promote the rationalization and upgrading of service sector structure.Taking measures in line with local conditions,we should guide reasonable fluctuations of housing prices,promote orderly and reasonable flow of heterogeneous labor force among industries,improve the development environment of enterprises,and promote the promotion of human capital.