Abstract
This paper analyzes the relative employment growth in regions of China in the periods of 1998–2002, 2002–2006 and 2006–2010. Using the Shift-Share analysis, the authors decompose the regional relative employment growth in the three periods mentioned above into department structural effect and competitive effect, based on panel data of the ownership sectors of rural and urban areas. It turns out that the largest part of variation in regional relative employment growth is explained by department structural effect. However, these two kinds of effects in the East and in the Midwest are greatly different: department structural effect is more significant in the East; there is a significant negative correlation between competitive effect and employment growth in the Midwest, which is not significant in the East.
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