Employment Elasticity Of China's Economic Growth Research

Since reform and opening-up, China's economy has increased rapidly and continuously, however, employment increases slowly. Western economics think that economic growth of one country and area is the result of technological progress, capital accumulation, workforce person, etc, and the positive correlation relation exists between growth of economy and employment. It is not consistency in economic growth and employment in China, and drops of the employment elasticity of the economic growth is a case in point. It is very urgent to solve workforce's employment problem. Carrying on the research to the employment elasticity in the hope of improving the ability of absorbing to employment of the economic growth has very strong reality and theory meaning. It is necessary to study employment elasticity in order to study economic growth and employment increase, involving economic growth and labor market. This paper uses the method of positive analysis, firstly, to study employment elasticity from promoting economic growth aspect especially technological progress and industrial structure, thinking technological progress and industrial structure is a factor leading to low employment elasticity; then from some characteristics of the Chinese labor market such as workforce's market segmentation, " informal " to obtain employment, recessive unemployment and demand behavior of workforce of enterprise, labor market characteristic of China and insufficiency of enterprise effective demand in workforce is main reason of low employment elasticity. The main content of this paper has five following parts:First part is the introduction, and it has introduced some basic conception. Then this paper studies domestic and international economic growth and employment relation carrying on the survey.In the second part, we use different stage and model law to calculate the employment elasticity of the economic growth from 1978 to 2003 in detail respectively, and point out the advantage and disadvantage of each method.The third part analyzes the relation between technological progress and industrial structure developing with the employment elasticity, one of the factors of low employmentelasticity lie in technological progress and industrial structure.The fourth part analyses from some characteristics of the Chinese labor market such as workforce's market segmentation, " informal " to obtain employment, recessive unemployment and demand behavior of workforce of enterprise, labor market characteristic of China and insufficiency of enterprise effective demand in workforce is main reason of low employment elasticity.The fifth part is the policy recommendations, that come up with from the respects of technological progress, industrial structure and the labor market, etc.Main innovation of this paper: first, using workforce's market segmentation theory, divide labor market into the urban labor market and rural labor market analyses relation overall employment elasticity and employment elastic, pointing out that China labor market segmentation is one of factor of overall low employment elasticity; second, from enterprise recruitment angle, we analyze change of employment, and point out that micro foundation of employment elasticity is important reason which influence employment elasticity.