The Study On The Relationship Between China's Employment Growth And Wage Growth

What is the relationship between the wage growth and the employment growth in our country? And based on this relationship, how does the change of the wage level affect the change of the employment level? They are two questions which this thesis tries to answer. More specifically, this thesis firstly analyzed how the wage in our country was determined in recent period based on a series of western wage-determined theories. Then, the causality of the wage growth and employment growth in our country was obtained via the quantity analysis of the statistics of the real wage growth and the employment growth of our country from year 1978 to 2008. Based on this relationship, the wage elasticity of employment was introduced so as to further analyze to what extent the change of employment level responds to the change of real wage level, and this analysis was detailed into the primary industry, the second industry and the tertiary industry of our country, including a number of monopolized businesses. At last, a series of factors which have negatively impact on the employment level of our country in recent stage were summarized, and a number of corresponding political suggestions were given. The detailed chapters are arranged as follow:Chapter 1: Guide theories.Chapter 2: The wage determine in our country's labor market recently and the analysis of the relationship between the wage growth and the employment growth of our country. The result is that our country's wage growth Granger causes our country's employment growth.Chapter 3: The introduction of the wage elasticity of employment and the analysis of the wage elasticity of employment of the year 1978-2008 of our country. The result is that the wage elasticity of employment of our country lacked of elasticity in recent years.Chapter 4: The calculation,analysis and compare of the wage elasticity of employment of the primary,second and tertiary industry of our country. The result is that the elasticity of the primary industry was negative while the elasticity of the second and the tertiary industry were positive.Chapter 5: the analysis of the factors which caused the low wage elasticity of the employment of our country.Chapter 6: the corresponding political suggestions aiming at the factors got by the analysis above.