Empirical Analysis Of China's Technical Progress On Employment

Science and technology, as the first productive forces, play a decisive role in a country's future economic growth, while employment is precondition and foundation for a country to maintain sustained economic development and social stability. While technological progress is not directly on the labor market, but can via some mechanism to the employment. In the neoclassical theory of economic growth, economic growth ultimately depends on exogenous technological progress, technological progress is the deciding factor of the economic growth and welfare of a nation, unemployment did not exist in the long run, so there is very little attention to technology progress on employment, but with the appearance of the endogenous growth theory, technological progress makes the impact on employment has received considerable attention. At present, the employment effects of technological progress on the theoretical point of view are not the same, the artery view insisted that technical progress and employment growth is a dilemma:choose technical progress, means that high-tech, capital-intensive industry is dominated.This will be against employment growth. And to solve the employment problem, we must play our comparative advantages, that is abundance, cheap labor, low-skilled, low-capital, labor-intensive industry as our dominated one, which undoubtedly in turn enlarge Industry in China and developed country's technology gap.As a populous country, employment is always a major issue, but the technology advance decide our country's future economic development. Based on such a background, the core issue of this paper is the technological progress affect the employment, linked the existing research literature, starting the mechanism of technological progress affect the employment. Go along the empirical analysis on the technological progress of China's affect the total employment, considering the imbalance of the China's economic development and the regional differences of the resource endowment, we also examine the difference of the technical progress on regional employment.Based on this, we can get the corresponding conclusions and the policy implications. This article is divided into four parts, the first a brief background and significance of the topics, the second part introduces the related meaning of the technological progress and employment, and reviewed the domestic and foreign implications of the research literature, the third part based on the technological advances on the employment mechanism, and combined our three decades of reform and opening up technological progress in all provinces the situation and employment situation, take an empirical analysis on total employment of the China's technological advances and the differences across regions is included, the fourth is analysis of results and corresponding policy implications.This paper argues that employment growth will change as technology advances changes, as the time goes on, the interaction of the technological progress to employment, "compensation effect" and "destructive effect" is different, current technological advances will significantly reduce employment, but with the economic development, technological advances of the "compensation effect" would exceed the "destructive effect", which will promote employment growth, it is clear that this is a long process. From the mechanism of technological progress on employment, technological progress through the accumulation of capital stock of our country had a role in promoting employment growth, which shows between China's capital and employment the "complementary relationship" stronger than "alternative relationship." However, Adjustment of industrial structure on employment growth in China resulted in a significant role in promoting and in different regions did not show significant differences, which for our country to promote the development of tertiary industry provides evidence of employment growth.