Study On The Space Agglomeration Of Labor In China

There is a reciprocal causation relationship between economies of scale and spatial agglomeration of labor. The essence of agglomeration economy is the substitution of capital and labor for land. Since the 1990 s, national rural surplus labor force and urban hidden unemployment population was released with the deepening of China’s reform and opening-up policy and the comparative advantage between provinces. According to the National Health and Family Planning Commission, the floating population dynamic monitoring survey data displays that the national floating population grew by an average annual rate of about 8 million during the 12 th five-year. In 2014, the working age floating population-people between the ages of 15 and 59-is 197 million, which accounts for 78% of the floating population and 15% of the total population. The National Health and Family Planning Commission expects that the population will continue to be concentrated along the river, the coast and the railway during the 13 th five-year with the process of the integration of the economy. Under this realistic background, it is of both theoretical and modern significance to build an analysis framework of the spatial agglomeration of labor force in the process of China’s economic and social development, study on the formation mechanism of labor force spatial agglomeration and discuss the development rules and trends of dynamic resource under in context from the theoretical level of Spatial Economics.According to the above realization, this paper defines spatial agglomeration of labor as the phenomenon of the concentration of the labor force from different regions to one or several specific areas because of any connection of the employment in a specified time. The process and trend of this kind of concentration is of clear spatial geographical orientation and scale characteristics, the obvious characteristics of the internal and external economies of scale is presented. In this paper, analyses were based on spatial econometrics analysis and ArcGis and Geoda software using China census data, Economic census data and China statistical yearbook data. In the analysis process, with the framework of the theory of “core-periphery” and “circle cumulative cause and effect” from New Economic Geography, the evolution characteristics of the spatial agglomeration of labor in China and its causes were discussed using econometrics based on Labor Economics and New Economic Geography. The research is also relied on the regional division of labor, industrial agglomeration and the accumulation of labor cycle cumulative causal relationship.When combing through the institutional background of China’s labor resources allocation, it can be found that analysis framework of new economic geography is insufficient to explain the allocation of labor resources and the flow of the country’s highly centralized planning system from 1949 to 1978, but after the reform and opening up it is powerful in explaining the spatial agglomeration of labor resources in China.From 1990 to 2010, China Labor collection and drainage pattern experienced further polarization. The labor density in the central and western regions increases limited and remained low. The increased density of the labor force is mainly concentrated in the mega-cities and the eastern coastal areas, three main labor gathering place were formed in Beijing-Tianjin-Hebei, Pearl River Delta and Yangtze River Delta. Through the review of history, We also proved that the above regions have the characteristics of lasting stability. As yet, these areas and other regions of the West constitute core-peripheral relations of the National Labor Force Spatial Agglomeration.With global spatial autocorrelation test approaches, I found that there were strong spatial dependent relationships among different areas, but the relationships were weakening. With Partial autocorrelation test methods, I found that after 2000, "high-high" type of concentration areas were mainly concentrated in Beijing, Tianjin, Shandong, Henan, Jiangsu, Zhejiang provinces. The "low-low" type of dispersion zones were located in the southwest and northwest provinces, such as Xinjiang, Qinghai, Tibet, Sichuan, Guangxi. There was an intermediate area which lied between "high-high" and "low-low" type of areas. It was a transition zone, namely "low-high" areas, including Jilin, Liaoning, Hebei, Shanxi, Shaanxi, Hubei, Hunan, Guizhou, Jiangxi, Fujian and Chongqing. Shanghai became the only "high- low" zone.Based on the spatial concentration equilibrium model from the perspective of the new economic geography, I found that the local market effects caused by the external economies of scale were key factors which influenced industries and labor agglomeration, the effects of external income increment which were concerned with living cost effect, knowledge sharing and knowledge spillover effects were the main reasons for labor agglomeration. This kind of labor agglomeration had a self-reinforcing function, which thereby formed a cycle of cumulative causation effect. That was, monopoly non-agricultural firms centralized in the bigger markets. It led to changes of living costs which appealed labor to live and work in some main areas. Labor agglomerations expanded the scale of the local market further, and accelerated monopoly enterprises agglomeration. In this process, a positive feedback mechanism formed. The final vision might be a dynamic equilibrium in which monopolistically competitive firms entered the markets and the labor force migrated across regions.The spatial econometric test results based on labor agglomeration motivation show that the index of scale economy, geographical location, knowledge sharing and consumption ability makes a good explanation to the labor force, labor agglomeration has a significant spatial dependence. While, public finance income, foreign dependence, foreign direct investment, the total consumption of social retail goods, average wage of urban employees, R& D staff of full-time equivalent and the number of valid patents in China are significant at a 1% significant level. The added value of the second and third industry, fixed asset investment, urbanization level and per capita education years are significant at a 5% significant level, which is of explicit meanings in statistical and economical terms.