The Influence of Expected Income Gap Between Regions on Labor Outflow in Northeast China

The Influence of Expected Income Gap Between Regions on Labor Outflow in Northeast China


Author:Zhang Shiwei, Lin Shuyu Journal:Jilin University Journal Social Sciences Edition Date:2021(1)

Abstract: The large outflow of labor in northeast China has become an issue closely concerned by economists. The paper predicts the employment probability and wage of the northeast registered labor in different regions by constructing the employment equation and wage equation of northeast and eastern regions, because the labor flowing out of northeast China is mainly flowing into eastern China. And the paper analyzes the influence of the expected income gap betweenregions on the outflow of labor in northeast China by constructing the structural labor flow selection equation. The results show that the employment rate and wage level of the northeast registered labor in the eastern region are significantly higher than those in northeast China. The promotion effect of education on the employment and wage growth of the northeast registered labor in eastern China is obviously greater than that in northeast China. The improvement in absolute and relative incomes, as well as the increase in employment opportunities, has led to the influx of a large number of labor from the northeast region, especially high-skilled labor, into the eastern region. And the outflow tendency of the registered labor in northeast China will gradually increase with the expansion of the expected income gap between regions. Therefore, while promoting market-oriented reform and economic development, local governments should formulate corresponding talent policies, and retain the high-skilled labor by providing relatively generous wages and various forms of subsidies, so as to lay the human resource foundation for the revitalization of northeast China's economy.

Keywords: Northeast China; labor mobility; wage; employment; income gap


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