Employment, Wage And Technological Progress

Since the reform and opening up, along with the upgrading of industrial structure and urbanization, China’s labor market segmentation phenomenon has weakened in recent years, the central and the local government has introduced a number of initiatives to improve agricultural labor income. Migrant labor into the urban labor market, on the one hand to provide a sufficient and cheap labor resources to make up the shortage of industrial workers in local economy, on the other hand, promote a new channel to the traditional income distribution and flow of production factors system. In economic and social transition period, the impact of migrants on the city labor market are not the same as past. With the development and popularization of nine-year compulsory education, urban migrant labor significantly increased the level of education, not only affects the employment and wage of urban local low educated labor force, but also causing employment and wageof highly educated local population changes. Migrant labor is also the important factor of city productivity level and technological progress and the industrial restructuring.Draw on relevant research experience of china and abroad, this paper base on migration theory, the labor theory of employment, labor wage theory and theoretical advances in technology, construct the corresponding mathematical models, numerical simulation and microscopic measurement methods, to measure migration select of foreign labor flows, foreign labor impact on the urban labor market employment and wages, as well as the impact of foreign labor on urban total factor productivity and the trends and degree of skill-biased depth study. The results showed that:(1)In the selection of migrant, educated of workforce, the income distribution, and the overall employment situation and labor productivity will have a significant impact on the flow selection of labor. The more education accept by labor force, more likely to migrate to larger areas of skill premium;If there is intensified competition in the job market, the willingness to live in a city permanently will be reduced; Total factor productivity of highly educated and low-educated labor migration have produced positive effects on willing of migrants, and increased with level of education.(2)The impact on employment, the overall impact of foreign labor flow have a negative impact on the local labor employment rate, but the impact is very limited. Education levels and the employment environment continue to be improved, highly educated foreign labor to compete more actively involved in urban employment market, relative to the less educated populations, highly educated local workforce faces greater employment pressure and competition. Meanwhile, labor homogeneity supply shocks on the labor force who flow into the city previously. From an industry point of labor, low entry barriers for industry, foreign labor has almost no effect on the local labor force; In the industry of higher human capital requirements and high entry barriers, foreign labor supply a larger impact on the local labor force. Educational structure of labor produce the same negative impact on the local labor employment rate. For the pre-inflow of foreign labor, due to almost infinite elasticity of new foreign labor, they face the most intense competition in employment market.(3) The impact on wages, by estimating the elasticity of substitution between the various labor groups,and introduce the capital stock per worker into the model to simulate the impact of urban wage rate by inflow of labor. In the short term, labor flows into the city have a very limited negative impact on local labor wages, in the long term, foreign labor can contribute to urban residents income growth; inflow of foreign labor for the early groups, due to the homogeneity of labor, wage rates appear larger decline, and undergo a process of increase after the term of decrease, in which the most affected group of undergraduate education group.(4) the impact on technological progress, this paper confirmed the foreign labor can significantly improve the city’s total factor productivity, and promote the role of foreign labor efficiency mainly from the non-skilled-bias technological progress, that is, mainly due to low-skilled labor production efficiency. By incorporating a series of control variables such as R&D spending, the use of new technologies, openness, testing the robustness of these effects. Positive impact on productivity induce from foreign labor can be attributed in part of foreign labor and local labor groups take comparative advantage in the production of non-production intensive and labor-intensive and effective division of work, ultimately enhance the overall efficiency. Based on estimated results of this chapter, examine the impact of foreign labor on wages and the conclusion in consistent with above:the influence of foreign labor of local less educated labor wages close to0, but can enhance the local higher level of education residents wages.Finally, in the context of urbanization strategy, to improve the employment environment and the native population income levels in the urban labor market, promote integration of urban migrant population in the true sense, and healthy and sustainable socio-economic development, this paper give some policy recommendations:to improve unified public employment service system, to further improve the human capital stock of foreign labor, and to adjust distribution of urban resources.