Skill-biased Technical Change,Labor-biased Allocate And Labor Polarization

Labor polarization has always been concerned by foreign scholars.Due to the difficulty in obtaining relevant data,the number of studies on labor polarization are relatively small,so more attention to should be paid to the general trend of the labor market in China.In this study,we built a two Level-Three Factor CES production function which includes three kinds of labor.New methods were used to estimate the wages and numbers of each level labor.We used standardized supply-side system equations to measure the elasticity of substitution among heterogeneous labor forces and skill-biased technological index and labor forces allocation bias index,and the decomposition of low-skilled and middle-skilled labor relative employment and relative wages,and tried to verify whether the polarization phenomenon has been appeared in China’s labor market.The result shows that the elasticity of substitution between high-skilled workers and medium-skilled workers changed to be smaller than the low-skilled ones from 1992 to 2015.The high-middle skill-biased index indicates that recent technological progress has been biased toward medium-skilled labor.The allocation bias indicates that the allocation of elements begin to be biased toward low-skilled labor which is a manifestation of the weak polarization of the labor market.Technological progress between low skill and medium skill tends to be biased towards middle skill,which inhibits the rise of relative wages in low skilled labor.The relative employment between low and medium skilled workers shows a declining trend,and the bias effect of low skill and medium skill labor restrains the improvement of relative employment.As a whole,although the phenomenon of labor polarization isn’t so clear in China nowadays,but the trend of labor polarization is on the road.