The Impact Of Human Capital Mismatch On Total Factor Productivity Of China

Based on data from China Industry Business Performance Database,Wind database,China Statistical Yearbook and China Labor Statistics Yearbook,this paper calculates the impact of human capital mismatch on TFP from different perspectives.Using the data from China Industry Business Performance Database 2004,from the sub industry perspective of manufacturing industry,we find that the total factor productivity loss caused by mismatch of production factors between enterprises is 25.8%,far less than the result of Hsieh&Klenow(2009),in which the loss of human capital mismatch is 9.7%.From the perspective of ownership,The loss of the total factor productivity on mismatch of production factors between the state-owned and non-state-owned sectors is 67.3%,in which the loss from human capital mismatch is 29.3%.The further calculation results show that the mismatch between the state-owned sector is more serious than that of the non-state-owned sector.From the regional perspective,The loss of efficiency caused by mismatch reached 78.3%,In which the loss caused by human capital mismatch has up to 33.3%.The results also show that the degree of the production factors mismatch is higher in less developed areas than the developed areas.In addition,this paper also uses the data of 2011-2015 years A-share enterprises and the New Third Board enterprises in 2016,By estimates,the mismatch situation between A shares has improved year by year,The Total Factor Productivity loss caused by the mismatch of production factors is decreasing,In 2015,the loss was 22.9%,caused by human capital mismatch is 9.8%.The loss between the New Third Board enterprises is 49.1%,caused by human capital mismatch is 15.1%.From any perspective,the mismatch of Human Capital is serious.If the allocation of human capital can be optimized,the total factor productivity has a great growth potentially,and the growth of the whole economy will also be greatly improved.