Impacts of China's non-state owned economy's development on change of labor force allocation structure

Abstract

After reform and opening-up, the China's Non-state owned economy grows rapidly. The Non-state owned economy not only becomes support in the growth of China's economy, but also makes a significant influence on increasing employment and promoting the transfer of labor in different industries and the employment structure's upgrade. In this paper, it sets forth the theoretical foundation of labor force transfer and industry structural optimization theory. Through the econometric analysis on the impacts of China's economy's development on the change of allocation structure of labor force , we found that the marginal effectiveness of Non-state owned economy labor growth contributes on GDP growth is more than the state owner economy. Also, the Non-state owned economy's employment elasticity is more flexible than state owner economy. Meanwhile, the Non-state for labor employment absorption ability is better than state. Besides, within the Non-state owned economy in China, the third industry labor growth is greater than the second industry on quantity and multiple. In a word, development of Non-state owned economy has produced a notable and important effect on promoting the labor industrial allocation and industrial structure transfer adaptly. Non-state owned economy has become the main factor to absorbing rural labor force and promoting the allocation of labor force from agriculture to non-agriculture industry.