The Impact Of Fiscal Basic Public Service Expenditure On Labor Supply

In 2019,the number of permanent residents in Guangdong Province reached 115.21 million,ranking first in China.The permanent population of 15-64 years old reached 86.08 million.The labor force is relatively large and the demographic dividend still exists.However,with the development of the social economy and the increasing aging of the population,the Guangdong Province has also been challenged by the quantity and quality of the labor force.In terms of quantity,although the overall labor force is still large,there is a slowdown in the growth rate and uneven distribution among regions.In terms of quality,the quality of the labor force in Guangdong Province is difficult to meet the requirements of industrial upgrading and innovative development.There is a relative shortage of highly educated and highly skilled talents.Therefore,the talent dividends potential needs to be tapped.At present,the pursuit of people for life quality is constantly improving,and at the same time the demand for public services is increasing day by day.When choosing the employment place,the labor force is more concerned with the level of public service.Therefore,it is of practical significance to analyze the impact of basic public services on the supply of labor force,and to promote the transformation from demographic dividend to talent dividend by optimizing financial investment in basic public services.On the basis of other related research,this article first analyzes the necessity of fiscal intervention in public services through theoretical analysis,clarifies the mechanism of the impact of fiscal basic public service expenditures on labor supply,and analyzes the labor supply and basic public service expenditures in Guangdong Province based on the actual local situation.On this basis,this article selects the panel data of 21 prefecture-level cities in Guangdong Province from 2007 to 2018.Among them,basic public services include education,social security and employment,medical hygiene and family planning.By constructing a fixed-effect model,this article analyzes the impact of fiscal basic public service expenditure on labor supply in Guangdong Province and various regions.The study finds that: First,the labor force in Guangdong Province is large and the demographic dividend still exists,but the regional distribution is uneven and the labor force quality is difficult to meet the development requirement;second,the fiscal basic public service expenditure of Guangdong Province is relatively large,but the per capita expenditure on basic public services and the intensity of expenditure on basic public services are relatively low;third,the increase of fiscal basic public service expenditure is an important factor affecting labor supply,but this impact has regional heterogeneity.Based on the above conclusions,this article puts forward relevant suggestions: the government should increase financial investment in basic public services,optimize the structure of fiscal expenditures,promote the equalization of basic public services,break institutional barriers,promote the urbanization of the floating population,and at the same time improve the quality of labor from both the stock and the increment,realize the transformation from demographic dividend to talent dividend.