Research On The Influence Mechanism Of Fiscal Policy On Employment

Employment is a top priority for people’s survival and social stability.At present,the international situation is complicated,and China is in a critical period from high-speed development to high-quality development.It is of great significance to maintain stable employment.At the same time,employment is also an important connecting point between demand and supply,which has a profound impact on the construction of a new development pattern.The Chinese government has always attached importance to the issue of employment.It has successively issued and implemented policies to promote employment,such as assisting enterprises to stabilize jobs,paying attention to the employment and Entrepreneurship of key groups,and cultivating new forms of employment.It has successively proposed to do a good job in "stabilizing employment" and "ensuring the employment of residents",providing important support for alleviating the employment problem.As an important starting point for the government to carry out macro-control,the main goal of fiscal policy is to achieve full employment.Then,in the context of the current implementation of the employment priority strategy,how effective the fiscal policy in China has been in promoting employment,and through what mechanism,is a subject worthy of in-depth study.Based on this,this paper takes the fiscal policy as the main line,expounds the mechanism of its direct and indirect impact on employment from the theoretical aspect,and uses the structural equation model for empirical test,and puts forward suggestions for further optimization and improvement of the fiscal policy to promote employment according to the empirical analysis results.Taking the panel data of 30 provincial units in China from 2007 to 2019 as the research sample,this paper makes an empirical analysis on the corresponding assumptions put forward by the theoretical analysis by using the partial least squares structural equation model.The results show that:(1)from the national level,China’s long-term fiscal policy has played a practical role in promoting employment.In terms of direct impact,fiscal policy has produced a significant employment pulling effect;In terms of indirect impact,fiscal policy can indirectly promote employment by driving economic development,stimulating residents’ consumption and improving the level of technological progress,while it can indirectly inhibit employment through the optimization of industrial structure.(2)From the regional level,the impact of fiscal policy on regional employment has significant regional heterogeneity.In terms of direct impact,fiscal policy can promote employment in different regions to varying degrees.In terms of indirect impact,there are some differences in the mechanism of fiscal policy affecting regional employment.Among them,fiscal policy mainly depends on Residents’ consumption and industrial structure optimization to promote employment in the eastern region;it mainly relies on economic development and household consumption to promote employment in the central and western regions.Based on the results of empirical analysis,this paper provides a useful reference for the government to implement specific fiscal policies and measures to promote employment more effectively.Starting from the national level,we should support the implementation of the employment priority strategy with more active and effective fiscal policies,promote the quality and efficiency of fiscal policies,and provide sufficient impetus for the realization of employment.From the regional level,formulate differentiated fiscal policies to promote the coordinated development of employment among regions.The eastern region pays more attention to the use of fiscal policies to promote regional technological progress and help optimize and adjust the industrial structure;the central and western regions should pay more attention to the economic effects of fiscal policies,help regional economic development and improve residents’ consumption level.