A Comparative Study On High Growth With Low Employment In China's Whole Country And Its Different Region

China's economy has witnessed very high growth since 1978. However, such a high speed development didn't bring along a corresponding growth in employment, especially after 1990s. In China, many a scholars explain the phenomenon from various perspectives, such as economic transition, institution reform, structure adjustment as well as technological progress, nevertheless most of their findings just focused on the whole country aspect. It is well-known that, the diversity in both local condition and policy treatment has results in the serious imbalance of the economic developments in different regions. A long-term imbalance development has beening caused the diversity of industrial and employment structure in the Eastern, middle and western part of China. Therefore, to analyze the employment problem simply on the horizon of the whole country aspect must be undoubtedly ignored the distinct regional diversity, which may result in inaccurate conclusions. This dissertation takes similar location and economic structure among different regions into consideration as well as divides the whole territory into three economic areas: the East, the center and the West. So it analyzes the employment effect of economic growth on form regional and the whole country aspect. Through the comparison on different aspects some new conclusions have been made, which could further reinforce concerning country-aspect research.First, we do empirical research on China's economic growth rate, employment growth rate and calculate the employment elasticity of recent 30 years. By comparing with foreign countries we find it is a rare phenomenon of China's high growth with low employment rate in world-wide.Secondly, we research the relations between economic growth and employment separately from the whole country aspect and regional aspect, compare the employment elasticity of different regions at different stages and their reasons, and analyze the regional affect to the gross employment. Through the panel-data method, we come to the following conclusions:①The employment elasticity of the East is higher than the West, but the difference just began to appear since 1990s. We infer that the propelling effect on the whole country's employment caused by the employment in the East is not sustainable.②From the regional aspect, we find that since 2000, the employment elasticity of the Middle and the West have been keeping an steady trend. Oppositely, the East elasticity has dramatically increased, which do not agree with the empirical observation from the whole country aspect. We infer the reason lies in the impact of laid-off worker, which fail to actually reflect in the whole country's statistics.③Regional research shows that, if the structural factor, such as the reform of state-own enterprises, is excluded from the factors that affect the whole country employment rate, the whole country employment elasticity will keep in a low-level-equilibrium.④Many a research has over-estimated the propelling effect of the East. To realize the same employment growth, the East would have to have an as 1.8- times elasticity as middle and west. So the key point to solve the phenomenon of China's "High growth, low employment rate" is to fasten the industrialization process of the Middle and the West.Thirdly, we draw structural factors into research from the whole country aspect and regional aspect. Four factors were picked up to make interpret China's employment growth, which are update degree of industry structure, changing intensity of industry structure, dual economic structure and ownership structure. The panel-data model shows:①The development of the secondary industry has a positive influence on the employment in different regions.②The increasing proportion of the third industry didn't produce obvious facilitation to employment in the East, which is opposite in the Middle and the West. One main reason is that the predominance service industry in East has relatively low employment elasticity.③From the whole country aspect, the severe fluctuation of industrial structure exert a negative influence on the employment rate. However, in the East, the fluctuation of the industrial structure propels employment growth.④The dual economic structure impede the income difference to be the reason of smooth shift of population form rural areas to city.⑤An increasing development of non-state-owed economy propelled the employment in different regions. Non-state-owned economy, especially private economy, has been becoming an insubstitute factor to improve the employment at present in ChinaThe dissertation also discussed the affect of technological progress on China's employment. We research the affect from two aspects, gross effect and structure effect. The gross effect on employment is determined by both the extrusion effect and compensate effect. The cointegration test method has been used to examine if there are any relations between employment and technological progress. The model shows:①As far as the whole country , the Middle and the West are concerned, there is no cointegration between employment and technological progress. However, significance cointegration exists in the East, which is owing to the compensation-effect of technological progress exerted by the town-ship enterprises and industry cluster in the East.②The conclusion doesn't give support to the opinion that deepened capital has impact on China's employment.Finally, we analyze the economic and social effect resulted from China's low employment. Based on the fore research, we forecast the employment outlook and come up with regarding constructive suggestions.