The Labor Market In The Allocation And Regional Economic Convergence

Since the reform and opening up, with China’s rapid economic development,regional economic growth on China’s eastern coastal areas and central and westerninland areas imbalance gradually emerged, and showing a worsening trend. Regionaleconomy as an important part of the country’s economic growth preached the problemof uneven development, which to some extent hindered the pace of overall economicgrowth. Level of market-oriented, elements of market supply and rational allocation ofresources restricts the growth of the regional economy. With China eastern region’seconomic prosperity and development, high wages and good living environment toattract Central and western less developed areas of labor flows to the developed easternregions, and developed eastern regions for the strong support of the national policy leadin development, to take to boost the economic development of underdeveloped areasaround. Thus, the eastern part of the market becoming more mature, a higher level ofthe market to absorb the flow of labor of workers with higher human capital, todeveloped eastern region brings together a lot of talent, to enhance the eastern part ofthe total human capital, brought a great contribution to local economic development,and promote the economic development of the eastern region,but also improve theefficiency of labor resource allocation. In recent years, due to the central region by thestrong support of the national investment policy, the central region of publicinfrastructure construction vigorously to attract workers and businesses to transfer to thecentral region, formed on the whole flow of labor to east central region of the westernregion, eastern part of labor flows to the central region, and the eastern region is still themain flow of the situation of the labor force.Thus, the eastern and central gap graduallynarrowed, the gap between east and west are still gradually widening.This article is based on the "convergence theory", the reference to the Soloweconomic growth model to study the impact of the regional labor mobility in China onthe issue of regional economic development. This article is divided into five parts: Thefirst part is an introduction; The second part is a literature review, Focuses on theresearch of scholars in labor migration and regional economic convergence; The thirdpart is the theoretical research. By the introduction of labor mobility in the Solow model,Labor mobility caused by the regional labor market distortions, and its relationship withthe Regional Economic Growth Convergence theoretical analysis shows that labor mobility to promote economic growth in developed regions, to reach a stable economicconvergence rate, prompting the less developed regions gradually developed areas theconvergence of the steady state of the economy. The fourth part is the empirical analysis.Through inter-regional labor mobility and the corresponding regional economic outputrelationship, the empirical test of labor migration to speed up the convergence ofeconomic growth in the eastern region, and promote the regional economic gapgradually widening. The fifth part is the conclusion. Labor mobility promote the EastMidlands regional economic growth, so as to achieve a higher economic convergencespeed, gradually reduced gap between the eastern and central and east-west economicgap is still widening.