Abstract
The institutional environment not only has a great impact on economic development but also has a certain impact on labor agglomeration. This paper explains the phenomenon of labor agglomeration from the perspective of the labor market institutional environment. Taking the labor market institutional environment including social contract environment and labor contract environment as the premise, it is considered that a good labor institutional market can promote labor agglomeration and technological progress can stimulate the agglomeration of highly-skilled talents through theoretical analysis. Based on the provincial panel data from 2001 to 2017, the empirical analysis is conducted to verify the relevant factors through the dynamic spatial Durbin model. The paper finally puts forward some policy suggestions to maintain a good institutional environment of the labor market, including that the local government should continue to improve the labor dispute settlement system, strengthen the protection of labor rights and interests, and enhance the institutional environment of the regional labor market.
Highlights
Since the reform and opening-up, great changes have taken place in China’s regional economic pattern
This paper aims to study the impact of the institutional environment of the labor market in different regions of a country on labor agglomeration
The institutional environment related to employment plays an important role in the labor agglomeration
Summary
Since the reform and opening-up, great changes have taken place in China’s regional economic pattern. The level of economic development and that of public services are quite different These institutional environments which are directly or indirectly related to employment have significant effects on agglomeration and dispersion of the labor force. Regression results shows that the coefficient in front of the explanatory variable (lnjal) is positive and significant, indicating that the improvement of the labor institutional environment can promote the spatial. The good institutional environment in a region is good for economic development and will bring about labor agglomeration, which will have a spatial spillover effect and have a positive impact on labor agglomeration in adjacent regions. This paper extend the regression by changing the explained variable, table a_1 in the appendix is regression result; by changing the weight matrices, table a_2 in the appendix is regression result
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