Factor Return Differentials, Structure Evolution of Labor Force and Industry Transition: Empirical Evidence from Chinese First and Second Economy Survey-质量院英文网
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Factor Return Differentials, Structure Evolution of Labor Force and Industry Transition: Empirical Evidence from Chinese First and Second Economy Survey

April 7, 2016

(School of International Trade and Economics,University of International Business and Economics)


Abstract: The data from Chinese first and second economy survey in 2004 and 2008 is employed to analyze the regional and industrial structure changes of labor force and test the FPE theorem. The results indicate that, the development levels cause the significant differentials of factor price of labor; the degree of regional development and openness differentials aggravate the non-equalization tendencies of labor; the differentials of industry itself and development level will diffuse the non-equalization trend of labor; the positive changes of high educational labor amplify the differentials of labor factor price, but can provide intellectual storage and driving force for the development of sub-industry and industry upgrading. Finally, suggestions for how to promote the regional and industrial shift of labor and the development and upgrade of industry are proposed out.


Key Words: Factor Return;Structure of Labor Force; Price of Labor Factor; Factor-specific Model; Industry Upgrade