Labor Market’s Distortion, Structural Change and Labor Productivity in China
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| Title | Labor Market’s Distortion, Structural Change and Labor Productivity in China
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| Author | Ge Qingen,Zhu xi and Shi Qinghua |
| Organization | Antai College of Economics & Management,Shanghai Jiao Tong University |
| Email | agai_hitsz@sjtu.edu.cn,zhuxi97@sjtu.edu.cn,shq@sjtu.edu.cn |
| Key Words | Distortion; Structural change; Labor’s productivity |
| Abstract | The great immigration of rural labor is one of the most significant features after economic reform and important driving force of China’s rapid growth. However, distortion of labor market is still exist and has been obstacle of economic growth. We introduce labor market’s distortion in standard two-sector, and employ Stone-Gary Utility Function to establish the relationship between distortion and economic growth, and then calibrate the model based on Chinese macro data during 1980-2009. First of all, our research show that the distortion do exist and did not tend to dismiss over time; secondly, we find the improving productivity of agriculture is the main force of the great immigration and distortion hindered the immigration of rural labor. Finally, if we remove the distortion, ratio of agricultural labor in the economy will fall 15.76%, and the distortion has made 12.61% potential productivity losses annually. |
| Serial Number | WP419 |
| Time | 2013-02-21 |
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