Researching Economic Growth And Employment On "Okun’s Law"

Nowadays, with the accelerated process of economic globalization, the world’s economy is growing rapidly. Most people believe that the future is expected to be positive which is consistent with the overall trend. However, it is undeniable that a country may occur in the event of unrest. China can be considered a "big country" no matter the population or land area of the country. However, this "big country" is not entirely able to compare with the Western capitalist powers phase. Our economy has some problems on the industrial structure employment levels and output growth. And whether a country is able to stabilize and forward the point is people can find work, income level can meet the needs of people’s daily lives. So unemployment and income are two essential factors in the country’s growth. Therefore to explore the two is essential. However unemployment statistics of our country generally been questioned. The unemployment rate in empirical analysis will lead to the deviation indicator. The article will select the employment indicators, which is opposite to unemployment to empirical analysis. We will discuss the relationship between economic growth employment and income based on the "Okun’s Law".Firstly the article combs the theoretical knowledge systematically. Describes the effects of the division "Okun’s Law" Petty-Clark’s Law and Smith-Young’s theorem. Its purpose is expounding the general laws of healthy development by the division. It is the division of labor and mutual promotion of market size. Second show the relationship between labor mobility and income by Petty-Clark’s Law. Third Smith-Young’s theorem provides the theoretical basis for the model in this paper.Then, select the time period. This paper selects the relevant economic data in1978since the reform and opening up. According to three industry categories on our economy, statistics and maps output growth and employment in each industry. Then show the trend of both economic and employment situation. This presents a typical positive relationship that is with the economic growing but the job growth reduced.Secondly, based on the model of theory, this paper uses econometric methods for quantitative analysis. It obtained relation between employment wages and industrial growth. This relationship also supports the theoretical analysis of the data provided below. Finally, due to the lack of each industry’s wage data, the paper select historical data since2004. By adding this variable wage growth, the economy of the country explained the reasons for the phenomenon. This explanation also verifies the conclusions of earlier quantitative analysis--rising wages can stimulate economic growth within a certain range. In the last-mentioned article, wages and monetary policy are closely linked. Therefore, the paper gives some relevant recommendations about money supply and direction.