| Under the background of economic globalization,China's participation in international division deepening,let the world see it's comprehensive strength and huge market potential.China has maintained the first foreign investment in developing countries in the past twenty years.At the same time,our wage level is going through the process from reasonableness to unreasonableness,and the education premium(wage gap between high degree and low educated workers)as one of the important forms of China's wage gap has reached a historic high level.Reasonable wage gap is the inevitable result of market economy,but if it is too large,it will cause obviously unfair,dampen the employee enthusiasm,and bring sustained and stable development of social economy challenges,so it will be of great significance to explore factors which give rise to wage gap among workers with different education level.Current Study on the education premium in China is mainly concentrated on the international trade,biased technological progress,but in fact,foreign direct investment also has impact on the education premium by affecting the supply and demand of the labor market.Based on this,this paper explores the mechanism of foreign direct investment on the labor market in detail.The study found that foreign direct investment through two spillover effects to enhance the relative demand for highly educated workers.The first one is Direct knowledge spillover effect of FDI,behaving as the foreign enterprises engaging in local production activities which causes series of technology diffusion effect,including imitation effect,competition effect,linkage effect,personnel flow effect,and these effects are complementary with highly educated labor.The second one is Indirect knowledge spillover effect of FDI,behaving as the foreign companies transferring the intermediate products from developed countries to developing countries through import trade,these products are of high technology content for developing countries,which need talents of high degree to adapt.The further expansion of foreign direct investment as an influencing factor of education premium not only enriches the current research on the educational premium,but also helps to adjust and optimize the current FDI policy.In order to further verify whether two spillover effects of foreign direct investment have an influence on the relative wages of highly educated labor force by means of affecting the relative demand for high educated labor.This paper basing on the theoretical basis,using micro CHNS survey data and the world bank,OECD "main science and technology indicators",China statistical yearbook and some other macro data,makes an empirical analysis of the influence of two spillover effects on China's wage gap.The results show that:Firstly,FDI does increase the relative demand for highly educated labor through the two spillover effects,and has a significant positive effect on the educational premium.Second,whether it is a national sample or regional,urban and rural samples,the spillover effect on education premium by engaging in local production activities,exceeding that caused by the import trade.Third,in the regional sample,two spillover effects on education premium in eastern region is obviously higher than that in Midwest area;In urban and rural samples,urban spillover effect of FDI on education premium is higher than rural areas',which are consistent with the actual situation.In view of the above conclusions,this paper puts forward relevant suggestions,such as reasonably raising the level of attracting foreign investment;increasing investment in human capital,increasing the relative supply of skilled labor;encouraging and supporting local enterprises for R&D investment activities;coordinating overall development,increasing the opening degree of the central and western regions and attracting more foreign investment;Increasing efforts to help workers with low skills and low wages;improving the income distribution mechanism,improving social security level and so on. |
PDF Full Text Request