Finance Of People's Livelihood And Labor Location Choice

The cross-regional migration of labor is a common and prominent phenomenon in China,which is caused by the huge regional imbalance of development.Although the growth of household separation has slowed down since 2014,the scale of floating population is still huge in our country.The flow of labor also changed during this period.With the economic development and change of industrial structure,the desire for new driving force has promoted the labor demand to shift from the early quantitative type to the qualitative type.Changes in the structure of local fiscal expenditures is one important manifestation of that.However,whether the livelihood expenditure policy of local governments can affect the location choice of labor,especially the high-skilled labor,is an urgent issue for local governments in decisions-making.Starting from the realistic background,this paper takes the public financial expenditure structure of local government as the entry point to conduct theoretical analysis and empirical research on the relationship between people's livelihood fiscal expenditure and labor location choice.On the basis of summarizing and reviewing the existing research,this paper sorts out the typical facts of people's livelihood fiscal expenditure and labor migration,and puts forward the theoretical mechanism hypothesis that the people's livelihood finance affects the labor location choice as follows:(1)high fiscal expenditure of people's livelihood will improve the level of public services in the region,thus exerting a pull on labor;(2)high fiscal expenditure of people's livelihood is always accompanied by a high tax rate,so there is a push on labor;(3)under the dual role,the individual utility of the labor presents an "inverted U-shaped" trend to the people's livelihood fiscal expenditure.Then this paper conducts empirical tests on the relationship between the people's livelihood finance and the labor location choice.Firstly,it explores the impact of per capita people's livelihood finance on the labor.Secondly,it analyzes whether the different types of expenditures of people's livelihood finance have different effects on the labor.In final part of empirical test,it discusses the labor individual and regional heterogeneity.This paper also proves the transmission mechanism between the people's livelihood finance and labor location choice.Last part of this paper is conclusions and recommendations,summarizing the findings of this research and put forward some corresponding policy implications.Through a series of empirical analysis,main conclusions are as follows :(1)the scale of people's livelihood fiscal expenditure has an “inverted u-shaped” effect on the labor,and most cities shows pull at present.(2)people's livelihood fiscal expenditure has a significant structural effect on the labor location choice.Increasing the proportion of education expenditure can significantly promote the inflow of labor force.(3)the impact of people's livelihood fiscal expenditure on labor location selection is heterogeneous.First,the education level of labor and their parents will affect the inflection point of the “inverted u-shaped”.The labor with higher education level is less likely to be affected by high livelihood expenditure.Second,the level of economic development will also affect the role of people's livelihood fiscal expenditure on labor.People's livelihood fiscal expenditure shows a “U-shaped” trend in developing cities while showing an “inverted U-shaped” trend in developed cities.(4)the public service level and tax rate of the city have strong inertia.Cities with higher fiscal expenditure on people's livelihood have higher public service level,thus exerting attraction on labor.At the same time,fiscal expenditure on people's livelihood needs to be supported by higher regional tax rate,thus exerting resistance on labor.Labor makes the choice of migration under the balance of the two,and finally shows an “inverted u-shaped” effect on people's livelihood fiscal expenditure.Based on the above research contents,this paper suggests that each city should make different policy arrangements according to its actual situation.In order to attract labor to a greater extent,most cities should expand the scale of financial investment in people's livelihood,especially in education.In addition,due to the existence of household registration gap,local governments should pay more attention to the public services for immigrant workers,equalizing their opportunities to enjoy services to offset the resistance brought by the household registration system.