Research On The Influence Of Geographic Concentration Of Labor On Regional Disparities In China

Since the reform and opening up, the contradiction and uneven development between the various regions inside China is increasingly prominent, especially since the1990s. The regional income gap is gradually expanding, has become the urgent problem facing Chinese economy coordinated development. Many factors affect the regional disparity, and the labor force has a decisive effect on regional development.For scholars have studied regional income disparities in China for a long time, the results have certain differences. This paper studies how labor geographic concentration affects labor income gap between regions and select the2002-2011provincial panel data to conduct empirical analysis. In this paper, we use the ratio of the employment population to the population of local government staff as the index of labor geographic concentration. The human capital concentration and the ordinary labor concentration were calculated respectively. The result shows that a series of mechanisms triggered by human capital concentration will raise the income level, and the inequality distribution of human capital may lead to the regional income gap. While the effect the ordinary labor concentration on the region’s per capita income does not significant. This is because the two aspects of the ordinary labor concentration offset each other, and the ordinary labor migration has a positive role in narrowing regional disparity.Based on the conclusion of the study, this paper proposes to improve the human capital in the central and western regions, speed up city construction, promote the full mobility of labor and develop rural economy.