The Impact Of International Intra-product Specialization On Labour Market

With the continuous development of the specialization, the analysis on developed countries’ industrial inanition and labor demand shift makes the study about intra-product specialization’s influence on labor market becoming one of rising topics in international economics subject. Since then the research of international intra-product specialization’s effect to employment and income distribution becomes frontier and hot issue in current trade theoretical field. Also it has realistic meaning to trade policy exercise.China as a developing great population nation, participates in the intra-product specialization with abundant labor resources endowment. While the domestic labor market experiences constant changes:employment levels continue to increase, but the share of labor income shows declining trend, the proportion of skilled labor continues improve, employment structure has been improved, but the labor wage gap continues to expand. Whether there is a close relationship betweenparticipating in the intra-product specialization and the changes of Chinese labor market? This article gives the answers from the view of international intra-product specialization effecting employment scale, employment risk and income distribution.The Paper is organized as follows. Section1is a preamble, introducing research background, purpose, approach and innovation. Chapter2presents literature overview, in this section, I unscramble the relevant papers about international intra-product specialization effecting labor market from both theoretical and empirical aspects. Chapter3describes the situation of China’s participation in the international intra-product specialization and domestic labor market. Chapter4to Chapter6is the main part of this paper:study the impact of participation in the international intra-product specialization on employment scale, the elasticity of labor demand and income distribution theoretically and empirically. Conclusions, relevant policy recommendations and directions for further research are given in Chapter7.Basedontheabovestudy, the papergetsseveral conclusions:First, the participationin the international intra-product specializationcan play a role in promoting employment scale improved. And the labor with high skill level experiences the most obvious influence, which can serve to improve the employment structure.Second, the participation in the international intra-product specialization can heighten the level of labor demand elasticity, increasing labor market fluctuations and volatility, and the labor with high skill level experiences the most obvious impact.Third, the participationin the international intra-product specialization reduces the relative share of labor income to capital, expanding the capital-labor income inequality, and the higher capital-intensive industries experiencestronger impact.Forth, the participationin the international intra-product specialization compresses the wage gap between skilled and unskilled labor, narrowing the income inequality between the labor force with different skill levels, and the industries with higher technology experience more obvious influence.The contributions of this article include:First, thisarticle broaden the research of the impact of the international intra-product specialization on labor market. Second, this article’s mechanism analysis of the impact of the international intra-product specialization on labor market is more in-depth. Third, this article is not satisfied with the overall analysis, seizing different labor force and industry characteristics, and considering the issue from a dynamic perspective. Fourth, we use the continuous-time input-output table data to measure the participation in the international intra-product specialization, making up for the time intermittent defects using domestic input-output data.