Effect Of Upgrade Of China’s Manufacturing Export Technical Sophistication On Wage Gap

Economic globalization, technological progress on China’s economy has playeda significant role in promoting, since the21st century, China’s export technicalsophistication is constantly upgrading, however, the upgrade of export technicalsophistication promot rapid economic development at the same time, it also bringssome negative impact inevitably. For example, it also brings a huge impact on therelative wage gap of the skilled and unskilled labor. Many research experienceindicated that, with the upgrade of export technical sophistication, the relative wagegap of the skilled and unskilled labor in our country showed a rising trend. Soregarding the relationship of export technical sophistication and wage gap becomesa hot topic of international economists and labor economists study.The author constructs export technical level index of the province level, usingprovince panel data by descriptive statistics and system GMM method, empiricaltesting the relation of the export technical sophistication of China’s manufacturingprovince level regions capital and labor intensive biased industries and the relativewage gap of the skilled and unskilled labor from2002to2012. Thus providing somepractical guiding significance for China’s industrial structure adjustment andupgrading.The results show that:1. From2002to2012, the export technical sophisticationof China’s manufacturing province level regions capital and labor intensive biasedindustries are constantly upgrading, but no Rodrik measure so high;2. From anational perspective, the upgrade of export technical sophistication of capital andlabor intensive biased industries significantly increases the relative demand andwage of skilled labor, thereby increasing the relative wage gap of the skilled andunskilled labor;3. From a regional perspective, the upgrade of export technicalsophistication of capital and labor intensive biased industries positive effect ofeastern region on the relative wage gap of the skilled and unskilled labor issignificantly higher than the central and western regions, be seen the upgrade of export technical sophistication of capital and labor intensive biased industriespositive effect of national perspective is mainly caused by eastern region;4. Foreigndirect investment is also significantly expands its relative wage gap, while regionalopenness and the contribution rate of total assets significantly reduce the wage shareof skilled labor.Thus, in the process of industrial structure adjustment and upgrading, we usethe upgrade of export technical sophistication to the relative wage gap of the skilledand unskilled labor bring a positive impact at the same time, of course we can notignore the negative effects to the wage gap, that is, we must insist on the case ofopening-up, adjust the industrial structure rationally, in order to avoid the upgrade ofexport technical sophistication to the relative wage gap of the skilled and unskilledlabor bring a negative impact. The upgrade of export technical sophistication expandsour wage gap, but since it is the fundamental way to enhance the overall strength ofour country, we can only improve the export technical sophistication at the same time,develop effective allocation policies to better address the relationship betweenefficiency and fairness. Of course, confined to the author limited academic level,there are still many shortcomings in this paper, the final part of the paper points outthe limitations of this research field and the direction of future efforts required.