Determination of Labor Allocation between Manufacturing and Service Industries
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| Title | Determination of Labor Allocation between Manufacturing and Service Industries
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| Author | Wu Qiang, An Xiubo and Zhu Shu |
| Organization | School of Economics, Nanjing University |
| Email | qiangwu@nju.edu.cn；407613432@qq.com |
| Key Words | Potential Supply Scale of Service Industry; Labor Allocation; The Supply Side Structural Reform |
| Abstract | Supply side structural reform requires redundant labor in the excessive manufacturing industries to flow into the service industry, and research on labor allocation between service and manufacturing industries should be paid more attention. This paper proposes the potential supply scale of service industry could measure the absolute development space of the service industry, attract the labor to move from the manufacturing to the service industry, and is the core factor to determine the labor allocation between the service and manufacturing industry. This paper estimates the potential supply scales of service industry, producer service sector and consumer service sector of 30 provinces of China in 2002-2013. The results state these three potential supply scales expanded continuously, but the ratio of producer service potential supply scale decreased, and in eastern provinces, the ratio of producer service potential supply scale was smaller than the ratio of its real added value, and in middle and western provinces, it was the opposite. The empirical research proves that expansion of the potential supply scale of service industry improves the labor allocation ratios between service industry and manufacturing industry, service industry and heavy manufacturing industry, and attracts the labor flow from manufacturing to service. This paper also uses the ratio of the potential supply scale to the actual added value of service industry to measure the relative development space of the service industry, and proves it's expansion has the same effect. |
| Serial Number | WP1239 |
| Time | 2017-11-17 |
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