Labor institution environment and labor agglomeration based on provincial panel data analysis
Abstract With the shift in regional economic patterns in China, Chinese labor forces are showing a trend toward concentration. Many scholars are analyzing this trend of labor agglomeration from the perspective economies of scale and transaction costs. This study explains the phenomenon of labor agglomeration from the perspective of the labor system environment. First, it considers that the labor system environment includes the social contract environment and labor contract environment. Second, it attempts to show that a good labor system environment can promote labor agglomeration through theoretical analysis, while technological advancement can promote the agglomeration of professional and technical talents. Third, this study uses provincial panel data to conduct an empirical analysis. Finally, the paper presents some policy suggestions for maintaining a good labor system environment, including improving the level of public service of the floating population and building harmonious labor relations.