Abstract
Industrial structure optimization is an important explanatory variable of economic growth. The allocation of production factors among industries affects the evolution of industrial structure and then acts on economic growth. Labor force is one of the most important factors of production. In recent years, there has been a significant wage difference between different industries in China’s labor market, and the employees have shifted from low-wage industries to high-wage industries. Using the sample data of 282 prefecture-level cities from 2008 to 2018, this paper tests whether this wage-guided labor industry allocation will affect economic growth and whether there is an intermediary effect of industrial structure optimization. The empirical results show that the allocation of labor force to high-wage industries not only directly hinders economic growth but also indirectly hinders economic growth through the intermediary effect of industrial structure optimization. Furthermore, this paper makes a comparative study in different regions. The research conclusion shows that promoting the optimization of industrial structure and economic growth depends on correcting the price distortion of labor market and guiding the cross-industry rational allocation of labor force.
Highlights
Industrial structure optimization is the most significant feature in the process of economic development and the core variable to explain the economic growth rate and growth mode [1]. e reason why the optimization of industrial structure will affect economic growth is that production factors flow between different industrial sectors, from sectors with low productivity or low productivity growth rate to sectors with high productivity or high productivity growth rate, which improves the productivity level of the whole society, that is, the allocation of production factors acts on economic growth through the optimization of industrial structure [2, 3]
E regression results of model 1 show that the regression coefficient of labor industry allocation on economic growth is significantly negative, indicating that the wageoriented cross-industry flow of labor has damaged economic growth in recent years. e regression coefficients of labor input and fixed asset investment are significantly positive, which is in line with the neoclassical economic theory. e increase of factor input is an important force to promote economic growth. e regression coefficient of scientific research innovation is significantly positive, and technological progress is an important driving force of economic growth
E regression results of model 3 show that when the variables of labor industry allocation and industrial structure rationalization are added to the equation at the same time, labor industry allocation still has a significant impact on economic growth, and the impact of industrial structure rationalization on economic growth is not significant
Summary
Industrial structure optimization is the most significant feature in the process of economic development and the core variable to explain the economic growth rate and growth mode [1]. e reason why the optimization of industrial structure will affect economic growth is that production factors flow between different industrial sectors, from sectors with low productivity or low productivity growth rate to sectors with high productivity or high productivity growth rate, which improves the productivity level of the whole society, that is, the allocation of production factors acts on economic growth through the optimization of industrial structure [2, 3]. E cross-industry flow of labor force will inevitably affect the change of industrial structure and further affect economic growth. In 2019, the average wage of employees in information transmission, computer service, and software industries with the highest value of urban units in China was 161,352 yuan, that in financial industry was 131,405 yuan, and that in agriculture, forestry, animal husbandry, and fishery was 39,340 yuan, with a significant gap. En, how does this cross-industry flow of labor force under the guidance of wage signal affect economic growth? Clarifying this issue will help China better follow the “quality change, efficiency change, and power change” at this stage, promote the optimization of industrial structure, improve the allocation efficiency of production factors, and tap new economic growth points In 2019, the number of urban employees in the financial industry increased by 18%, while that in agriculture, forestry, animal husbandry, and fishery decreased by 31%. en, how does this cross-industry flow of labor force under the guidance of wage signal affect economic growth? Is there an intermediary effect of industrial structure optimization? Clarifying this issue will help China better follow the “quality change, efficiency change, and power change” at this stage, promote the optimization of industrial structure, improve the allocation efficiency of production factors, and tap new economic growth points
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