Measure the Effects of China Labor Resource Allocation - An Empirical Study Based on the Decomposition of TFP

Since reform and opening up, labor force factor in China has witnessed three major transfers among the three industries and different regions. Labor force is an active input factor in economic operation and its allocation among the industries and regions is a direct embodiment of economic operation efficiency. In this context, empirical study on the effects of labor force resource allocation in China and experience drawn from the previous reforms and policies are of great significance for reality. As a result, this paper tries to obtain analytical framework and mathematics models by applying the aggregate production function and E.F.Denison's generalized method in disintegrating the total factor productivity. Based on the model and framework, the paper conducts empirical analysis on the effects of labor resource allocation among the industries and regions after reform and opening up in China and offers suggestions for policy consideration as for the improvement of labor resource allocation efficiency.